Time is short: There are just days left before the government could run out of cash to pay its bills.
Negotiations over raising the nation’s debt ceiling—which caps the amount of money the U.S. can borrow to fulfill its financial obligations—continue into late May. President Joe Biden and House Republicans are working on striking a budget compromise in time to prevent a federal default. Treasury Secretary Janet Yellen has warned that the U.S. could default as soon as June 1 if the debt ceiling is not raised.
But first: Here’s what the debt ceiling does, why it exists, and how defaulting on the nation’s debt could impact the economy.
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PUBLIC OPINION: ‘It Is Fire That They’re Playing With’: Americans’ Fears Grow as Debt Ceiling Deadline NearsUSA TODAY
Across America, families are watching with trepidation as negotiators in Washington work behind closed doors to try to strike a deal to raise the nation’s debt ceiling and cut federal spending.
POTENTIAL IMPACT: Debt Ceiling Breach Could Cut Millions of Jobs. Here’s Who Would Lose Employment FirstABC News
Even a brief debt ceiling breach of about one week would slash 1.5 million jobs.
Our country’s least advantaged citizens should not be forced to pay the largest price to prevent an economic catastrophe.
America is heading close to the brink of a self-imposed economic disaster with the Republican-led House refusing to pay the country’s debts unless President Joe Biden agrees on cuts to current and future spending and new curbs on social programs.
Veterans, seniors and government employees: These are just some of the people who stand to be impacted if Congress fails to raise the debt ceiling.
Advocates say such a coin would be one option to bypass the debt ceiling, but others believe the measure would not be legally sound.
WHY THIS KEEPS HAPPENING: The Debt Ceiling Is Dangerous. Here’s Why It Probably Isn’t Going Anywhere.FiveThirtyEight
From October 2021. What could prevent politicians from using the debt ceiling to put Congress in a political stranglehold; and why it’s unlikely that the debt ceiling will go away anytime soon.