The Treasury Department said Friday it would likely run out of cash to pay the nation’s bills by August, setting a new, firmer deadline for Congress to act to avoid a catastrophic default on the United States’ more-than $36 trillion debt.

That date could also become the new, de facto deadline for congressional Republicans to pass their megabill of tax cuts, border security investments and energy policy, assuming leadership sticks with its plan to approve a $5 trillion debt limit hike as part of that package.

Treasury Secretary Scott Bessent wrote in a letter to congressional leaders that “there is a reasonable probability” the government’s cash “will be exhausted in August while Congress is scheduled to be in recess,” urging Congress to increase or suspend the debt limit by mid-July “to protect the full faith and credit of the United States.”

The pressure to prevent a first-ever U.S. debt default could help GOP leaders whip support for the final package they are trying to steer past the Senate filibuster.

“A failure to suspend or increase the debt limit would wreak havoc on our financial system and diminish America’s security and global leadership position,” Bessent warned Friday.

If congressional Republicans don’t get their party-line bill to President Donald Trump’s desk before Treasury exhausts its borrowing power, GOP leaders will likely be forced to seek votes from Democrats to head off the fiscal cliff — an exercise that would likely require making major policy concessions to the minority party and risk alienating fiscal hawks.

In the meantime, still buoyed by the surge of revenue from tax season, the Treasury Department is due to get another cash bump in mid-June when quarterly tax receipts flow in from corporations, self-employed people and some other filers.

Then Bessent will be able to extract more borrowing power in late-June from a key federal retirement fund. That’s just one of the typical “extraordinary measures” Treasury has been using to keep the U.S. from defaulting on its loans since the debt limit was reinstated in January, as prescribed by a 2023 deal then-President Joe Biden struck with then-Speaker Kevin McCarthy.

President Donald Trump did not act at the behest of lawmakers overseeing the Library of Congress when he fired its chief, Carla Hayden, three people close to those overseers said.

Members on key congressional committees with jurisdiction over the massive library, who questioned Hayden at hearings in recent weeks, did not encourage the White House to remove her, the people said. In some cases, they themselves found out about Hayden’s removal Thursday through news reports and third parties.

“The president acted on his own in this decision,” said one person, who like the others was granted anonymity to discuss the sensitive matter.

White House Press Secretary Karoline Leavitt told reporters Friday that Hayden, the first Black person and first woman to lead the Library of Congress, “did not fit the needs of the American people.”

“There were quite concerning things that she had done at the Library of Congress in the pursuit of DEI and putting inappropriate books in the library for children,” Leavitt added.

The Library of Congress does not lend books to children, or to adults. Its Young Readers’ Center hosts talks by children’s authors and provides online materials and programming for kids to encourage reading. Talks, including those hosted by the library at the National Book Festival, have included a diverse roster of authors including those that tackle issues of race in books for teens.

Employees at the library are reeling after the sudden removal of Hayden. Three employees who were granted anonymity due to fear of retribution said they are concerned about a potential purge of the library’s vast collections.

The Library of Congress holds more than 178.2 million items, including more than 25.77 million books. Under federal law, U.S. publishers of books, periodicals and more are required to submit copies of all published works to the library for review and possible acquisition.

Hayden appeared before the Senate Legislative Branch Appropriations Subcommittee and the House Administration Committee in recent weeks, where she took questions from lawmakers on the use of artificial intelligence at the library, construction delays and cost overruns on a visitor’s experience renovation, and about the Congressional Research Service, which is housed within the library.

Lawmakers probed Hayden on an array of issues and acknowledged that she was responsive to inquiries outside of the hearing. Hayden’s 10-year term was scheduled to expire next year.