The United States could face a default on its $36.6 trillion national debt as early as August if Congress fails to raise the federal debt ceiling, according to a statement released by the Congressional Budget Office (CBO) on Wednesday. The warning underscores growing concerns about the fiscal health of the US government amid legislative gridlock in Washington.

The CBO’s projection aligns with the Bipartisan Policy Center's recent assessment, which places the potential default window between mid-July and early October. Both institutions emphasize that, without timely legislative action, the federal government may be unable to meet its financial obligations, triggering a range of economic consequences, including higher borrowing costs and damage to the country’s credit rating.

Republican lawmakers have yet to establish a timeline for addressing the issue. Past negotiations over the debt ceiling have frequently gone down to the wire, causing volatility in financial markets and resulting in downgrades of the US credit rating.

Former President Donald Trump has previously called on GOP senators to include a debt ceiling increase as part of broader legislation concerning tax reforms and domestic policy changes. However, the current political landscape remains uncertain, and no clear consensus has emerged among lawmakers on how to proceed.

The debt ceiling, a cap set by Congress on how much the government is allowed to borrow, has historically been a contentious issue in US politics. Failure to raise it in time can lead to government shutdowns, payment delays, and broader economic instability. As the projected deadline approaches, financial analysts and government officials are urging swift legislative action to avoid the risk of default and its far-reaching effects.