US Treasury Extends Debt Limit Deadline to July 24 to Avert Default

The US Treasury has pushed the debt limit deadline to July 24, granting lawmakers additional time to address the looming default risk. Treasury Secretary Scott Bessent emphasized the urgency for Congressional action before the August recess, citing potential complications from court rulings on Trump-era tariffs that could accelerate the so-called X-date.

Emergency measures have been extended, allowing the Treasury to employ special accounting maneuvers to stay within the legal borrowing limit. These include fund shifts between federal accounts and deferred investments in certain programs. The debt issuance suspension period has been prolonged through July 24, 2025.

Bessent's formal letter to House Speaker Mike Johnson and other leaders precedes the June 27 expiration of the previous suspension period. While these measures provide temporary relief, he warned they are no substitute for a permanent resolution. Failure to act risks eroding investor confidence and jeopardizing the US government's credit rating.