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.

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Further Reading
How Much Can the Administration 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.
How Do Quantitative Easing and Tightening Affect the Federal Budget?
The Federal Reserve plays an important role in stabilizing the country’s economy.
Can a Rescissions Package Help Lawmakers Formalize DOGE Cuts?
Rescission packages can serve as a tool for the President and Congress to manage and control government spending through a formal statutory process.