What is the debt ceiling?

House Republicans are The country’s $31.4 trillion borrowing limit in exchange for significant cuts in government spending. But with President Biden’s reluctance to cut, the bill faces an uncertain future in the Democratic-controlled Senate.Congress must raise the debt ceiling before the government run out of money Bill payments could occur as early as June.

Getting closer to the ceiling can have consequences. S&P cut US credit rating When Congress came to the point of not extending the limit in 2011.this downgrade Raised Treasury borrowing costs About $1.3 billion was lost in the fiscal year, according to the Government Accountability Office.