CBO: U.S. could run out of money by August if debt ceiling isn't raised

If Congress does not raise the debt ceiling, the United States is expected to default on its bills in either August or September, the Congressional Budget Office warned.

The latest projection by the CBO was announced Wednesday. However, it explained that if the government's borrowing needs are "significantly greater" than the nonpartisan agency expects, it could run out of money as soon as May or June, before tax payments are due and additional so-called extraordinary measures become available to the Treasury to make more cash available.

"If the debt limit is not raised or suspended before the extraordinary measures are exhausted, the government will be unable to pay all of its obligations," the CBO said in a statement. "As a result, it would have to delay making payments for some activities, default on its debt obligations, or both."

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