diff --git a/litellm/proxy/_types.py b/litellm/proxy/_types.py
index a4e11398558..0b0b4e66ef3 100644
--- a/litellm/proxy/_types.py
+++ b/litellm/proxy/_types.py
@@ -1110,8 +1110,8 @@ class NewUserRequestTeam(LiteLLMPydanticObjectBase):
     user_role: Literal["user", "admin"] = "user"
 
 
-def _validate_initial_budget_reset_at(value: Optional[datetime]) -> Optional[datetime]:
-    """Shared validator: ensure initial_budget_reset_at is not in the past."""
+def _assert_initial_budget_reset_at_valid(value: Optional[datetime]) -> None:
+    """Assert that initial_budget_reset_at is not in the past. Raises ValueError if invalid."""
     if value is not None:
         reset_at = value
         if reset_at.tzinfo is None:
@@ -1122,7 +1122,6 @@ def _validate_initial_budget_reset_at(value: Optional[datetime]) -> Optional[dat
                 f"initial_budget_reset_at cannot be in the past. "
                 f"Provided: {reset_at.isoformat()}, Current time: {current_time.isoformat()}"
             )
-    return value
 
 
 class NewUserRequest(GenerateRequestBase):
@@ -1148,7 +1147,7 @@ class NewUserRequest(GenerateRequestBase):
 
     @model_validator(mode="after")
     def validate_initial_budget_reset_at(self) -> "NewUserRequest":
-        _validate_initial_budget_reset_at(self.initial_budget_reset_at)
+        _assert_initial_budget_reset_at_valid(self.initial_budget_reset_at)
         return self
 
 
@@ -1191,7 +1190,7 @@ class UpdateUserRequestNoUserIDorEmail(
 
     @model_validator(mode="after")
     def validate_initial_budget_reset_at(self) -> "UpdateUserRequestNoUserIDorEmail":
-        _validate_initial_budget_reset_at(self.initial_budget_reset_at)
+        _assert_initial_budget_reset_at_valid(self.initial_budget_reset_at)
         return self
 
 
diff --git a/tests/test_litellm/proxy/management_endpoints/test_initial_budget_reset_at.py b/tests/test_litellm/proxy/management_endpoints/test_initial_budget_reset_at.py
index 40875b13736..0dbe7f68924 100644
--- a/tests/test_litellm/proxy/management_endpoints/test_initial_budget_reset_at.py
+++ b/tests/test_litellm/proxy/management_endpoints/test_initial_budget_reset_at.py
@@ -68,9 +68,15 @@ class TestUserCreationWithBudgetResetAt:
             max_budget=100.0,
         )
 
+        mock_license_check = MagicMock()
+        mock_license_check.is_over_limit.return_value = False
+
         with patch(
             "litellm.proxy.proxy_server.prisma_client",
             mock_prisma_client,
+        ), patch(
+            "litellm.proxy.proxy_server._license_check",
+            mock_license_check,
         ):
             result = await new_user(
                 data=user_request,