The federal government could be unable to pay its bills as soon as August if Congress doesn't act, the Congressional Budget Office estimated.

The United States is on track to hit its statutory debt ceiling — the so-called X-date when the country runs short of money to pay its bills— as early as August without a deal between lawmakers and the White House.

The US could default on its $36 trillion debt as early as July and no later than October without congressional action, according to a study released Monday.

The consequences of failing to raise the debt ceiling are astronomical and could cause the government to miss payments on its debt once it runs out of funds through the “extraordinary measures”

A major discrepancy has already arisen between Senate and House Republicans in the budget resolution they plan to adopt in order to pass President Trump’s domestic agenda. The 70-page

Senate Republicans had previously endorsed a two-track approach, with the second bill focusing just on renewing the 2017 Tax Cuts and Jobs Act.

If Republicans fail to get the votes on their own to lift the debt ceiling, with the deadline expected in August or September, they'll have to negotiate with Democrats.

Treasury Secretary Scott Bessent indicated that the federal government is at risk of running out of room to make good on all of its payment obligations on time as soon as May or June.

House Democrats are sending an early warning shot as the government’s borrowing window inches to a close: winning Democratic support for a debt-ceiling hike will come at a cost for Republicans.

The White House is eyeing this summer's debt ceiling's "X-date" as a forcing mechanism to push the "one big, beautiful bill" through Congress. "Gun to the head, the whole agenda, and the country's credit rating and global depression all rolled into one,