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While politicians continue to fight over raising the debt ceiling, the Congressional Budget Office said that the latest projections show there is a "significant risk" that the U.S. government could default on its debt obligations within the first two weeks of June.
The United States hit the debt ceiling in January and has been using "extraordinary measures" to continue meeting the government's obligations without borrowing additional money.
The CBO could not provide an exact date as to when the U.S. would be unable to pay its obligations. However, the non-partisan agency did note that if the U.S. manages to avoid defaulting during the first two weeks of June, it should be able to keep paying its obligations through at least the end of July.
The CBO said that expected quarterly tax receipts and another "extraordinary measure" available at the end of the month will allow the government to continue paying its bills.
The battle to lift the debt ceiling and avoid a default remains at a standstill, as Republicans refuse to raise the debt limit without spending cuts. Democrats have balked at the idea and have demanded the Republicans pass the debt ceiling without any spending cuts.
President Joe Biden is expected to meet with House Speaker Kevin McCarthy, Senate Majority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, and Senate Minority Leader Mitch McConnell next week to try to hammer out a last-minute deal that can be supported by both parties.