The U.S. Budget

Infographic: What Is the Debt Ceiling?

Last Updated June 26, 2023

The debt ceiling, also known as the debt limit, is the maximum amount of money that the U.S. Treasury can borrow. Increasing the debt ceiling allows the Treasury to borrow funds to pay for government obligations that have already been incurred as the result of laws and budgets approved by the President and the Congress.

Legislation enacted in June 2023 suspends the debt limit through January 1, 2025, allowing the government to continue spending on federal programs.

Why is understanding the debt ceiling important and what are the implications for our economy and our fiscal condition? The infographic below explains. For more details, see our analysis on the debt ceiling.

What is the debt ceiling?

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Tweet: The #DebtLimit has been raised frequently in the past — 90 times since the beginning of 1959. https://ctt.ec/8n7ak+ via @pgpfoundation

Since 1959 policymakers have raised the debt limit 90 times.

Tweet: Policymakers have come together repeatedly over the years to avoid default by raising the #DebtLimit — no matter which party is in power. https://ctt.ec/f57Ea+ via @pgpfoundation

While the U.S. has always paid its bills, we still have not addressed our fiscal problems and the limit on our national debt has grown.

Further Reading

U.S. Department of Treasury building

Debt Ceiling Update: What’s at Stake

If lawmakers do not agree on raising or suspending the debt limit before the extraordinary measures are exhausted, there would be severe consequences.

Copies of the budget

Quiz: How Much Do You Know About the Federal Budget?

A strong fiscal outlook is an essential foundation for a growing, thriving economy. Take our quiz to see how much you really know about the federal budget.

Image of the front of the Government Accountability Office building

How Much Can DOGE Really Save by Cutting Down on Improper Payments?

Cutting down on improper payments could increase program efficiency, bolster Americans’ confidence in their government, and safeguard taxpayer dollars.