diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 383e4c2c74..8b6fae40f2 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -1700,6 +1700,7 @@ async def update_cache(
                 # if user does not exist in LiteLLM_UserTable, create a new user
                 existing_spend = 0
                 max_user_budget = None
+                max_end_user_budget = None
                 if litellm.max_end_user_budget is not None:
                     max_end_user_budget = litellm.max_end_user_budget
                 existing_spend_obj = LiteLLM_EndUserTable(