Lifting the debt ceiling

Posted on: May 22, 2025 at 07:36:34 CT

The House bill would raise the nation's debt limit by $4 trillion. Lifting the debt limit doesn't authorize new spending. Instead, it allows the government to pay for programs that Congress has already authorized. If the cap isn't lifted and the government can't meet its obligations, then it will be at risk of default – a scenario that economists say would be catastrophic not just for the U.S., but the global financial system as a whole. Treasury Secretary Scott Bessent has told Congress that without action, the U.S. will run out of money to pay its bills as soon as August, which means the clock is ticking.