The debt ceiling is a statutory limit on the total amount of money that the federal government can borrow. When the limit is reached, Congress must raise it or the Treasury cannot pay the nation's bills, potentially leading to default.
The debt ceiling creates political leverage for budget negotiations but risks economic catastrophe if not raised. It can damage U.S. credit and financial markets.
The debt ceiling doesn't control future spending—it only allows payment for obligations already incurred by Congress.
The debt ceiling creates political leverage for budget negotiations but risks economic catastrophe if not raised. It can damage U.S. credit and financial markets.
The debt ceiling doesn't control future spending—it only allows payment for obligations already incurred by Congress.