Politics
U.S. Could Run Out of Cash by July, Analysis Finds
The United States could run out of cash to continue paying its bills by mid-July if Congress does not take action to raise or suspend the nation’s debt limit, according to an analysis on Monday by the Bipartisan Policy Center.
That deadline, known as the “X-date” — the moment when the United States is unable to meet its financial obligations and might default on its debt — is a fiscal milestone that’s among the most closely watched in Washington and on Wall Street.
The date is subject to considerable uncertainty. It relies on estimates of how much wiggle room the Treasury has to use accounting maneuvers — known as “extraordinary measures” — to keep paying the government’s bills by shifting money around. The Bipartisan Policy Center, a think tank, provided estimates suggesting that the X-date could come as late as the beginning of October.
Efforts to address the debt limit will likely consume Congress and the Trump administration later this year as Republicans race to enact trillions of dollars of tax cuts.
The debt limit is a cap on the total amount of money that the United States is authorized to borrow to fund the government and meet its financial obligations.
Because the federal government runs budget deficits — meaning it spends more than it brings in through taxes and other revenue — it must borrow huge sums of money to pay its bills. Those obligations include funding for social safety net programs, salaries for members of the armed forces and paying investors who have bought U.S. government debt in exchange for interest payments.
After a protracted fight, lawmakers agreed in June 2023 to suspend the $31.4 trillion debt limit until Jan. 1, 2025.
The national debt is now approaching $37 trillion. Republicans have been cutting federal jobs at government agencies and expressed a commitment to curbing wasteful spending, but lawmakers have showed little appetite for cutting social safety net programs, which are the biggest drivers of the growing debt.
“Policymakers must commit to responsible budgeting, which starts with avoiding debt limit brinkmanship and its impacts on our economy,” Margaret Spellings, the president of the Bipartisan Policy Center, said in a statement.
The analysis said that spending on disaster relief, the pace of tax 2024 collections and additional government revenue from Mr. Trump’s tariffs could affect the timing of the X-date. Savings from cuts recommended by the new Department of Government Efficiency could also extend the deadline.
Janet L. Yellen, the Treasury secretary under President Joseph R. Biden Jr., told Congress in mid-January that the Treasury Department would need to start using “extraordinary measures” on Jan. 21 to allow the United States to keep meeting its financial obligations.
Those measures are essentially accounting maneuvers that can prevent the government from breaching the debt limit. They can include suspending certain types of investments in savings plans for government workers.
President Trump said last year, before taking office, that he thought the debt limit was a “trap” set by Democrats and urged lawmakers to lift the borrowing cap or abolish it entirely.
Treasury Secretary Scott Bessent expressed skepticism about abolishing the debt limit during his confirmation hearing in January. He said, however, that he would study the idea and potentially work with Democrats, many of whom have long said that the debt limit creates unnecessary risks, on changes to the cap. Mr. Bessent told Bloomberg News last month that he was discussing the matter with large holders of U.S. debt.
In a letter to Congress this month, Mr. Bessent said that he was continuing to deploy the measures set in motion by Ms. Yellen. Those included pausing some investments in the Civil Service and Retirement Disability Fund and the Postal Service Retiree Health Benefits Fund.
The Treasury secretary said that he expected to provide an update in May on how long its cash would last and pointed to “unavoidable uncertainty” surrounding such forecasts.
“I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,” Mr. Bessent wrote.
House Republicans unveiled a budget outline last month that would raise the debt limit by $4 trillion and approve more than $4 trillion in tax cuts.
It is not clear how many Senate Republicans would support such a measure to lift the borrowing cap or if they would require the backing of some Democrats.
Politics
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Politics
Federal judge orders Trump’s name removed from Kennedy Center, says only Congress can rename it
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A federal judge on Friday ordered that President Donald Trump’s name be removed from the Kennedy Center for the Performing Arts.
U.S. District Judge Christopher Cooper, an Obama appointee, said the iconic venue cannot be renamed without an act of Congress, ruling that the Kennedy Center Board of Trustees overstepped its “statutory bounds by unilaterally renaming” the building.
As part of his ruling, the Trump administration will be required to take down all physical signage bearing Trump’s name and eliminate any references to a “Trump-Kennedy Center” from official materials.
TRUMP KENNEDY CENTER’S BOARD VOTES UNANIMOUSLY TO APPROVE $257M RENOVATIONS AND TWO-YEAR CLOSURE
A sign is displayed on the John F. Kennedy Center for the Performing Arts building. (Getty Images)
“The Kennedy Center’s organic statute makes crystal clear that the Center is to be named for President Kennedy, and it cannot bear any other formal name or public memorial based on the Board’s unilateral say-so,” Cooper wrote. “Congress gave the Kennedy Center its name, and only Congress can change it.”
Roma Daravi, the Trump Kennedy Center vice president of public relations, said the board plans to appeal the decision.
“We will review the decision carefully though the reality remains — the Center requires an urgent and significant restoration – a truth that even the plaintiff acknowledges,” Daravi said. “With $257 million secured by President Trump and approved by Congress, the resources are in place and we remain committed to pursuing every lawful avenue to ensure the Trump Kennedy Center is restored as a national cultural landmark for all Americans to enjoy.”
The ruling was part of a lawsuit filed by U.S. Rep. Joyce Beatty, D-Ohio. The White House did not immediately respond to a request for comment.
BOARD VOTES KENNEDY CENTER TO BE RENAMED ‘TRUMP-KENNEDY CENTER,’ LEAVITT SAYS
President Donald Trump stands in the presidential box during a tour of the John F. Kennedy Center for the Performing Arts in Washington, D.C., on March 17, 2025. On Friday, a federal judge ruled that Trump’s name must be removed from he iconic venue. (Jim Watson/AFP/Getty Images)
Cooper previously denied a request for a preliminary injunction filed by a preservation group to block the planned two-year closure of the Kennedy Center for a rehabilitation project.
Trump secured $257 million from Congress as part of the One Big Beautiful Bill Act to address disrepair and deferred maintenance of the Kennedy Center, which critics say has been neglected and mismanaged before Trump intervened.
The funds appropriated by Congress are spent on maintenance, repairs, security, and capital projects related to the building and site.
Beatty, who serves as an ex officio member of the board, praised Friday’s ruling.
“Today’s ruling rightly affirms that this administration’s efforts to rename and close the Center have no basis in law,” Beatty said in a statement provided to Fox News Digital. “The Kennedy Center is an institution that belongs to the American people, not to Donald Trump. He has desecrated this sacred memorial for his own vanity. I am proud to have fought for the rule of law and to protect this sacred institution.”
Workers install Donald J. Trump signage above the existing Kennedy Center sign in Washington, D.C., on Dec. 19, 2025. (Jacquelyn Martin/AP)
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Trump’s name was added to the venue last December following a unanimous decision by the board. In February 2025, Trump was elected chairman of the Kennedy Center board after removing 18 trustees appointed by former President Joe Biden.
Politics
Trump holds Situation Room meeting to decide on Iran deal
WASHINGTON — A framework agreement to end the U.S. war with Iran is all but settled, pending sign-off from the presidents of the two warring sides, President Trump said Friday, projecting optimism that a deal could finally be at hand.
Yet doubt cast a shadow over the diplomatic process entering the weekend as Trump faced a politically fraught decision to enter an agreement that would invariably require significant concessions to Tehran.
The negotiations have faced severe headwinds in recent days, with both sides accusing the other of violating a fragile ceasefire that has largely stopped the fighting since April.
On his Truth Social site, Trump said he had summoned his top aides to the White House Situation Room to decide on the deal.
The agreement would see an end to the U.S. naval blockade on Iranian ports and the removal of Iranian mines from the Strait of Hormuz, an international waterway through which 20% of the world’s energy supply passes each day. The strait, Trump wrote, will reopen with “no tolls” for “unrestricted shipping traffic, in both directions.”
And “Iran must agree that they will never have a Nuclear Weapon or Bomb,” Trump wrote, noting that Iran’s stockpile of highly enriched uranium, the key ingredient for nuclear weapons, “will be unearthed by the United States (which, it is agreed, is the only Country, along with China, with the mechanical capability of doing so!), in close coordination and conjunction with the Islamic Republic of Iran, plus the International Atomic Energy Agency, and DESTROYED.”
“No money will be exchanged, until further notice,” he added.
Treasury Secretary Scott Bessent also said the deal would require Iran to disavow the continuation of its domestic nuclear program — a diplomatic feat never before achieved throughout a quarter-century of international negotiations over Iran’s nuclear work.
It is unclear whether Tehran would go that far. And Iran’s negotiators expressed defiance on Friday, stating that there was “no trust in guarantees or words” from the American side.
“No step will be taken before the other side acts first,” said Mohammad Bagher Ghalibaf, the speaker of Iran’s Parliament. “We do not gain concessions through dialogue, but through missiles.”
It remains unclear when the Trump administration would ease sanctions on Iran, how extensive that relief would be, or what form it would take — questions that fueled Republican criticism of the Obama-era nuclear deal more than a decade ago.
The working diplomatic document would formally extend the existing ceasefire for 60 days, allowing for a more detailed negotiation to take place over Iran’s nuclear program. But the truce as it currently stands is on perilous ground. Iran launched a ballistic missile on Thursday at Kuwait, a close U.S. ally, after American forces took “defensive” actions against Iranian missile launchers and mine-laying boats it had launched in the strait.
The war has proved historically unpopular with the American public, and has seen oil prices soar since the U.S. military, in partnership with Israel, launched its first strikes against Iran in February.
Bessent said he is hopeful that oil prices would drop quickly once an agreement is signed. But industry analysts say the effects of the war on the oil market could last for months, if not years, with the stability of traffic through the Strait of Hormuz now in question for commercial shippers.
While oil has dropped to under $100 a barrel, markets appeared skittish on Friday over the prospects for a deal, with mixed messages appearing to emerge out of the region.
It is also unclear whether a U.S. agreement with Iran would in any way bind Israel’s hands in its military operations, either in Iran or in Lebanon, where an Iranian proxy militia, Hezbollah, has vowed to keep up the fight.
Israel has ramped up strikes against Hezbollah targets in recent days, jeopardizing a delicate ceasefire negotiated with the Lebanese government, a deal encouraged by the Trump administration in order to grease the wheels for its talks with Tehran.
Trump has been uncharacteristically silent on the prospects of an agreement in recent days, expressing cautious optimism in limited exchanges with reporters.
“It’s hard to say exactly when or if the president’s going to sign,” Vice President JD Vance, who has led the U.S. diplomatic team, told reporters, noting that “the nuclear stuff” is still subject to negotiation. “We’re going back and forth on a couple of language points.”
“I do think that we’ve made a lot of progress here,” Vance added. “Hopefully we’ll continue to make progress, and the president will be in a position where he can endorse the agreement. But obviously, that’s still TBD.”
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