The US about to hit the debt ceiling? The United States Congress is once again facing the issue of raising the debt ceiling, the legal limit on the amount of money the federal government can borrow.
The federal debt limit also known as the “Debt Ceiling” is the amount the government is allowed to spend beyond tax income. The United States has a limit to the amount of money it can borrow, which means it can run out of cash if the limit is not raised.
The debt ceiling has been a contentious issue in Congress for years, with Republicans and Democrats often at odds over whether or not to raise it.
Republicans argue that raising the debt ceiling would lead to increased government spending and higher taxes, while Democrats argue that failing to raise the debt ceiling could lead to a government shutdown or even a default on the national debt.
According to Sen. Mitch McConnell, the debt limit is to be raised as always. “The debt ceiling will be raised as it always should be, but it will be raised by the Democrats,” he said.
Failure to increase it before the deadline could mean government shutdowns. In previous years, shutdowns have lasted for days with hundreds of thousands of federal workers discharged. This occurred in 2013 and 2018.
On the contrary, Minority Leader Sen. Chuck Schumer seems to believe otherwise. He stated, “Republicans seem intent on driving our country down a dangerous road that leads off a fiscal cliff.
Secretary of the Treasury, Janet L. Yellen, warned last week that the United States will reach its existing borrowing limit cap of $31.4 trillion on Thursday, Jan 19.
The Biden administration has made it clear that they want to raise the debt ceiling as soon as possible and has urged Congress to come to a compromise on the issue. Some Republican leaders, however, have said that they want to see spending cuts before agreeing to raise the debt ceiling.
The debt ceiling has been raised several times in the past, but it has also led to government shutdowns and near defaults on the national debt. The situation is a delicate one, and it remains to be seen how Congress will handle the issue this time around.