WASHINGTON - Congress’s nonpartisan bookkeeper estimated that the federal government could hit its borrowing limit as soon as May if tax revenue falls short of expectations.
"The Congressional Budget Office estimates that if the debt limit remains unchanged, the government's ability to borrow using extraordinary measures will probably be exhausted in August or September 2025," the nonpartisan budget office said Wednesday.
Lawmakers are attempting to pass a package to extend expiring tax cuts and authorize new spending on immigration enforcement and national security. This legislation is also slated to include a $4 trillion increase to the debt limit, which caps how much the federal government can borrow to pay for spending it has already approved.
GW experts are available to provide analysis and commentary on this development. To schedule an interview with a GW expert, please contact GW Media Relations at [email protected].
Joseph Cordes is a professor of economics, public policy, and public administration at GW. Professor Cordes is an expert on budgetary policy.
Pao-Lin Tien is Assistant Professor and Director of Undergraduate Studies at the Department of Economics at GW. Professor Tien’s research interest focuses generally on empirical macroeconomics. She has publications and working papers in the area of international economics, monetary economics, business cycle fluctuations, and forecasting.
Sarah Binder, professor of political science, is an expert on the intersection between legislative politics and the economy. Professor Binder can discuss the dynamics on Capitol Hill.
Casey Burgat, director of the Legislative Affairs master’s program at the GW Graduate School of Political Management, can provide further insight into the political machinations in Congress.
-GW-