Debt ceiling

Established by Congress, the debt ceiling is the maximum amount the federal government is able to borrow to finance obligations that lawmakers and presidents ...

The legislation will fund government operations until the end of the fiscal year on September 30. Also, she is suspending the reinvestment of a government securities fund of the Federal Employees Retirement System Thrift Savings Plan. These funds are invested in special-issue Treasury securities, which count against the debt limit. On Tuesday, McCarthy rejected Democratic calls for a clean debt ceiling increase without any conditions attached. Even the So it would likely have to temporarily delay payments or default on some of its commitments, potentially affecting Social Security payments, veterans’ benefits and federal employees’ salaries, among others. [government shutdown](https://www.cnn.com/2019/01/10/politics/shutdown-effects-list/index.html) happens when Congress doesn’t pass a federal funding bill, while a debt ceiling crisis would occur if lawmakers don’t approve legislation to lift the debt limit. Increasing the cap does not authorize new spending commitments. For now, he is leaning in on using the debt ceiling crisis to reduce spending and balance the US budget. Secretaries in both Democratic and Republican administrations have taken such steps. These moves are mainly behind-the-scenes accounting maneuvers. The clock is now ticking on the nation’s debt ceiling drama.

House Republicans want to leverage must-pass legislation to raise the debt limit to extract federal spending cuts, but President Biden and congressional ...

"Lighting the fuse and thinking that you can stomp it down before it reaches the dynamite is not a very good strategy," he says. "We don't want to put any fiscal problems through our economy, and we won't," he told reporters, at the same time insisting that Republicans will cut spending. "We are getting to the point where you just can't delay it much longer at all because both of the trust funds for those programs are heading toward insolvency in a very short amount of time," she says. But on the other hand, MacGuineas says, Congress should never flirt with a debt default to try to extract those budget reforms. The Republican Party does not have a successful track record when it comes to trying to change the social safety net. If some Republicans want to try to change those, Amodei has a piece of advice for them: "Better have your helmet and your chin strap on." First, many Republicans want concessions in the form of steep cuts in annual discretionary spending bills that cover every aspect of the federal government, except for the Defense Department. Mark Amodei, R-Nev., sits on the House Appropriations Committee, which determines that annual spending, and he points out that nonmilitary discretionary spending is a tiny fraction of what drives the debt. If Congress fails to raise the debt limit before then, it will result in an unprecedented debt default, which could have catastrophic economic consequences worldwide. President Biden and congressional Democrats say they will not engage in negotiations on the nation's borrowing authority. Nobody in America wants us to blindly just raise the debt ceiling again if we don't get structural reforms around here. The debt ceiling is one of those.

House Speaker Kevin McCarthy has a tenuous hold on a GOP caucus dominated by Republicans who reject the normal mechanics of governing. The Biden administration ...

the threat will become a major market concern within months," Greg Valliere, chief U.S. - For years, markets have presumed that a U.S. democracy that's become increasingly polarized, ungovernable, incapable of tackling major challenges — and could be on the verge of outright destabilization. is expected to hit its borrowing limit on Thursday, meaning the Treasury will resort to " Financial blogger Josh Barro noted on Wednesday that extraordinary measures have been Among the challenges: debt default "is unthinkable, and we have agreed. [deployed at least nine times](https://www.joshbarro.com/p/a-boring-plan-for-managing-the-debt) in the last 20 years. Between the lines: The debt ceiling debate is an avatar of what some have argued is a U.S. [Wall Street abhors](https://finance.yahoo.com/news/jamie-dimon-may-have-a-point-on-the-debt-ceiling-morning-brief-091129705.html) — is being amplified by a Congress with a narrow GOP majority that's [digging in against hiking](https://twitter.com/RepAndyBiggsAZ/status/1615419794362142731) the debt limit, which the Biden administration on Wednesday branded " [economic vandalism](https://www.bloomberg.com/news/articles/2023-01-18/white-house-accuses-gop-of-economic-vandalism-over-debt-limit?sref=GTqOtL9A)." [extraordinary measures](https://www.axios.com/2023/01/13/biden-yellen-treasury-debt-ceiling-mccarthy)" to stave off a potential default. [fraught and perilous](https://www.axios.com/2023/01/11/congress-debt-ceiling-risks-could-be-real-this-time) debt ceiling debate — with each side becoming more entrenched in their refusal to negotiate with the other.

It's easy to promise to fix Congress. It's a lot harder to do so. I've seen it firsthand. Like many a speaker of the House before him, Kevin McCarthy is ...

They can proclaim the need for regular order all they want, but at the end of the day, the speaker has to find a way to keep his majority happy and also prove that he can govern for the rest of the American people. I appreciate the sentiments of the small band of rebels who demanded that McCarthy give them a bigger say in the legislative process, and I appreciate that they were using all their leverage to extract concessions before they gave him their vote as speaker. Regular order is great until the point that you need to pass legislation that pleases your caucus and the American people simultaneously. Bill Thomas (McCarthy’s former boss) was the chairman of the Ways and Means Committee and one of the principal architects of the Medicare Modernization Act, and he wasn’t all that concerned about regular order. The former speaker had little interest in a fair process and was more than willing to trample on the rights of the House minority. What regular order meant back then was a devotion to a predictable, repeatable, democratic and orderly process.

The Treasury Department said it would begin a series of accounting moves to keep the United States from breaching its borrowing cap.

Asked if she believed Republicans saw it as their responsibility to raise the limit and avoid a default, she replied, “They should.” Determining the actual “X-date,” when the United States will not be able to pay all its bills on time, is difficult because it depends on how fast tax receipts are coming in and the performance of the economy. [debt limit](https://www.nytimes.com/article/debt-ceiling-us-economy.html?action=click&pgtype=Article&state=default&module=styln-debt-ceiling&variant=show®ion=MAIN_CONTENT_1&block=storyline_levelup_swipe_recirc), is a cap on the total amount of money that the federal government is authorized to borrow via U.S. Daco said, predicting that sort of situation would lead to “a self-inflicted recession” and risk “severe financial market dislocations.” Many House Republicans call the current spending levels and the debt load a threat to economic growth. But at a moment of heightened partisanship and divided government, it is also a warning of the entrenched battles that are set to dominate Washington, and that could end in economic shock. “The American people rightfully recognize that maintaining Washington’s status quo, which runs up massive deficits and adds trillions to our national debt, is unsustainable,” Representative Jason Smith of Missouri, the chairman of the Ways and Means Committee, said in a statement. [vowed that they will not raise the borrowing limit](https://www.nytimes.com/2022/11/03/business/biden-debt-limit-shutdown.html) again unless President Biden agrees to steep cuts in federal spending. “The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. That is a decline from the past two years as emergency pandemic spending expired, though the Biden administration predicts the deficit will rise again in the current fiscal year. “I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.” from breaching its borrowing cap and asked Congress to raise or suspend the limit.

Treasury Secretary Janet Yellen, in a letter to Congress on Thursday, said the U.S. has reached its debt limit, and has begun resorting to "extraordinary ...

The U.S. Currently the U.S. "The period of time that extraordinary measures may last is subject to considerable uncertainty," Yellen wrote. Yellen had already previously warned the U.S. Raising the debt limit used to be a routine exercise for Congress but it has become increasingly fraught. Treasury Secretary Janet Yellen, in a letter to Congress on Thursday, said the U.S.

The debt limit is expected to be reached on Thursday warns U.S. Treasury Secretary Janet Yellen—but a possible increase is stuck in the GOP-led House.

Other market impacts included spikes in mortgage rates, and investors were less willing to loan to non-financial corporations leading to higher costs of borrowing, [reported](https://home.treasury.gov/system/files/276/POTENTIAL-MACROECONOMIC-IMPACT-OF-DEBT-CEILING-BRINKMANSHIP.pdf) the U.S. [2011](https://www.nytimes.com/2011/07/26/us/politics/26fiscal.html), former President Obama found himself in a standoff with congressional Republicans over the debt ceiling. While finally reaching a deal, just being close to the edge of hitting the debt limit sent stock prices plunging and sent markets in a volatile state. The U.S. economy, the livelihoods of all Americans and global financial stability,” wrote Yellen. With increases no longer automatic, Republicans can negotiate terms in order to increase the debt limit. from defaulting on its obligations. [report](https://home.treasury.gov/system/files/276/POTENTIAL-MACROECONOMIC-IMPACT-OF-DEBT-CEILING-BRINKMANSHIP.pdf) from the U.S. Treasury in order to pay its existing legal financial obligations. [letter](https://home.treasury.gov/system/files/136/Debt-Limit-Letter-to-Congress-McCarthy-20230113.pdf) to Congress warning the debt ceiling will be hit on Thursday, and the Treasury will have to take “extraordinary measures” to prevent the U.S. [measures](https://home.treasury.gov/system/files/136/Description-of-Extraordinary-Measures-Aug2021.pdf) Yellen expects to implement this month would be to redeem existing and suspending new investments to the Civil Service Retirement and Disability Fund (CSRDF) and the Postal Service Retiree Health Benefits Fund (Postal Fund); and also to suspend reinvestment of the Government Securities Investment Fund (G Fund) of Federal Employees Retirement System Thrift Savings Plan. [debt limit](https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/debt-limit), is the total amount of money the federal government is allowed to borrow through the U.S.

House Republicans want to leverage must-pass legislation to raise the debt limit to extract federal spending cuts, but President Biden and congressional ...

"Lighting the fuse and thinking that you can stomp it down before it reaches the dynamite is not a very good strategy," he says. "We don't want to put any fiscal problems through our economy, and we won't," he told reporters, at the same time insisting that Republicans will cut spending. "We are getting to the point where you just can't delay it much longer at all because both of the trust funds for those programs are heading toward insolvency in a very short amount of time," she says. But on the other hand, MacGuineas says, Congress should never flirt with a debt default to try to extract those budget reforms. The Republican Party does not have a successful track record when it comes to trying to change the social safety net. If some Republicans want to try to change those, Amodei has a piece of advice for them: "Better have your helmet and your chin strap on." First, many Republicans want concessions in the form of steep cuts in annual discretionary spending bills that cover every aspect of the federal government, except for the Defense Department. Mark Amodei, R-Nev., sits on the House Appropriations Committee, which determines that annual spending, and he points out that nonmilitary discretionary spending is a tiny fraction of what drives the debt. If Congress fails to raise the debt limit before then, it will result in an unprecedented debt default, which could have catastrophic economic consequences worldwide. President Biden and congressional Democrats say they will not engage in negotiations on the nation's borrowing authority. Nobody in America wants us to blindly just raise the debt ceiling again if we don't get structural reforms around here. The debt ceiling is one of those.

The US hit the debt ceiling set by Congress on Thursday, forcing the Treasury Department to start taking extraordinary measures to keep the government ...

If Congress fails to do so, Moody’s expects the US government would prioritize meeting its debt-service obligations on time and in full over other payments. Andy Biggs](https://www.cnn.com/2023/01/03/politics/andy-biggs-house-speaker-challenger/index.html) went even further in a tweet on Tuesday, writing, “We cannot raise the debt ceiling. Created more than a century ago, it has become a way for Congress to restrict the growth of borrowing – turning it into Also, it will suspend the reinvestment of a government securities fund of the Federal Employees Retirement System Thrift Savings Plan. And with the solution to the debt ceiling drama squarely in lawmakers’ hands, fears are growing that the partisan brinksmanship could result in the nation defaulting on its debt for the first time ever – or coming dangerously close to doing so. But choosing to pay one set of obligations over another could spark legal challenges, as well as political and ethical quandaries. These funds are invested in special-issue Treasury securities, which count against the debt limit. The speaker told reporters on Capitol Hill that the Biden administration should begin to negotiate ahead of this summer, when the US could default. Senate GOP leader Mitch McConnell, meanwhile, sought to reassure Americans that an agreement eventually will be reached with the Biden administration. The White House countered that it will not offer any concessions or negotiate on raising the debt ceiling. On Tuesday, McCarthy rejected Democratic calls for a clean debt ceiling increase without any conditions attached – something Congress has done time and again, including under then-President Donald Trump. The battle lines for the high-stakes fight have already been set.

Treasury secretary says department will take 'extraordinary measures' to skirt default while also urging Congress to act.

“There should be no political brinkmanship with the debt limit,” said the Senate majority leader, Chuck Schumer, a Democrat from New York. McCarthy said Biden needs to recognize the political realities that come with a divided government. Any major threats to the economy would be several months away. I respectfully urge Congress to act promptly to protect the full faith and credit of the United States,” Yellen wrote. The government can temporarily rely on accounting tweaks to stay open. These include a “debt issuance suspension period” lasting from today until 5 June, as well as suspending investments into two government employee retirement funds.

Goldman Sachs Group Inc.'s Chief Executive David Solomon expressed serious concern on Thursday that a political standoff over the U.S. debt ceiling could ...

That stand-off prompted a downgrade of the U.S. Solomon echoed other CEOs in Davos who expressed worries about the U.S. [debt ceiling](/world/us/us-govt-touches-debt-limit-amid-standoff-between-republicans-democrats-2023-01-19/) could lead to a fiscal crisis. Register for free to Reuters and know the full story For daily Davos updates in your inbox sign up for the Reuters Daily Briefing [(GS.N)](https://www.reuters.com/companies/GS.N) Chief Executive David Solomon expressed serious concern on Thursday that a political standoff over the U.S.

Rating agencies Moody's and Fitch expect the U.S. Congress will likely reach an agreement on a new debt limit before the Treasury drains resources to stave ...

Rating agencies Moody's and Fitch both have a triple-A rating for the United States - the highest credit quality status they can assign to a borrower. S&P Global said in its last published report on the U.S. if the government has the ability or the willingness to prioritize payments," he said. government would still likely continue to meet its debt service obligations on time and in full, giving them priority over other payments. NEW YORK, Jan 19 (Reuters) - Rating agencies Moody's and Fitch expect the U.S. credit rating for the first time, sending financial markets reeling.

(WASHINGTON) — Another spending fight looms between the White House and Congress, reviving similar stalemates in 2011 and 2013 under President Barack Obama.

Voters tend to channel anger at who is ‘in charge.’ In this instance, that includes a bipartisan group of leaders because of the current divide.” “Biden won’t need to negotiate as long as the public continues to understand that MAGA Republicans in the House are to blame for the looming crisis. “It ensures also that we will not face this same kind of crisis again in six months or eight months or 12 months,” Obama said then. “I think Republicans learned their lesson,” he said then. “I think members, especially the Republican side, are very pressured right now to be able to rationalize not just to themselves but to their constituents what $31.4 trillion means to the country in debt. Conservatives demanded the Obama administration tackle deficit reduction in order to raise the borrowing limit. The Senate has to recognize we’re not going to budge until we see meaningful reform with respect to spending,” he said on Fox News over the weekend, referencing negotiations with the Senate. government’s debt limit would be raised, ensuring it could continue to borrow money to pay its bills, in exchange for major spending cuts sought by Republicans. “This has become a political football because it’s so easy to pass back and forth and get points for hitting the other side,” said one House Democratic aide, granted anonymity to speak candidly. The Treasury Department has begun what Secretary Janet Yellen called “extraordinary measures” to keep the federal government funded and give Congress more time to act. So, when President [Joe] Biden says he’s going to refuse to negotiate with Republicans on any concessions, I don’t think that’s right,” Bacon said. “There will be no hostage taking.”

Every debt-ceiling standoff begins with both sides digging in their heels — and ends with one of them blinking.

Yellen has [dismissed the loophole](https://www.youtube.com/watch?v=_l5weeva42o)as a "gimmick." Joe Manchin (D-W.Va.), who has at times stifled Democrats' agenda over his own debt concerns, has signaled he [may reintroduce a bipartisan bill](https://rollcall.com/2023/01/18/manchin-floats-fiscal-commissions-for-debt-limit-bill/)to create a "rescue committee" for every endangered government trust fund. [smart money](https://twitter.com/JStein_WaPo/status/1616109908373524481?s=20&t=1FZwicNYsvTJGliScLpx_Q)" is on both sides saving face by establishing a commission to make nonbinding recommendations for spending cuts. - The U.S. - McCarthy gives in: As outlined above, McCarthy unilaterally disarming on the debt ceiling would likely end his career. [WaPo](https://www.washingtonpost.com/politics/2023/01/18/debt-ceiling-america-economy/?utm_campaign=wp_the_daily_202&utm_medium=email&utm_source=newsletter&wpisrc=nl_daily202). Kevin McCarthy to make historic concessions that empowered the conference's MAGA wing. That position officially hit its $31.4 trillion debt limit on Thursday, giving the Biden administration and Congress six or so months to stave off a catastrophic default. Why it matters: Every debt-ceiling standoff begins with both sides digging in their heels — and ends with one of them blinking. [told Semafor](https://www.semafor.com/article/01/19/2023/wall-streets-dc-watchers-have-never-been-so-worried-about-the-debt-ceiling)"there's probably never been a greater chance" the U.S. [extraordinary measures](https://www.axios.com/2023/01/19/congress-debt-ceiling-extraordinary-measures)" after the U.S.

U.S. Treasury Secretary Janet Yellen warned Republican and Democratic leaders that the federal government will reach its limit on the amount of money it is able ...

A similar standoff to raise the debt ceiling in 2011 downgraded the U.S. At that point, Congress will need to pass a new spending bill, or the government will shut down, potentially leaving thousands of government employees on unpaid furloughs, like the more than 800,000 employees deemed nonessential in the 2019 shutdown. The Federal Employees Retirement System is considered to be one of the best retirement plans available, reserved for the nearly two million civilian federal employees. The U.S. The 2022 filing period for the Internal Revenue Service (IRS) is from Jan. To address the debt ceiling, House Republicans have begun discussing spending cuts to social programs. The Treasury Department has begun using a series of “ [extraordinary measures](https://home.treasury.gov/system/files/136/Description-of-Extraordinary-Measures-Aug2021.pdf)” to avoid a government default on its debt, which buys the U.S. “If you’re going to pass a law that the spending is this and the taxes are this, then whatever the difference is, has to be debt. You have to pass the law that authorizes the debt.” [ hit its debt ceiling of $31.4 trillion on Thursday](https://time.com/6247877/what-is-debt-ceiling-congress/), raising economic concerns about what happens if lawmakers can reach a deal to pay the U.S. Since then, lawmakers have raised the debt ceiling dozens of times. Constitution, Congress needs to approve all borrowing, so Congress implemented the debt ceiling over a century ago to avoid approving each new debt.

There is no real debt ceiling beyond the duly enacted federal budget itself, which is the new fiscal law of the land every year it's enacted.

Here the idea is that if a general prescription or proscription made by a legislature appears to conflict with a more specific proscription or prescription made by the legislature, the more general provision is to be read as implicitly including an exception for the specific provision. [Section 4 of the 14](https://constitution.congress.gov/browse/amendment-14/#:~:text=Section%204%20Public%20Debt,rebellion%2C%20shall%20not%20be%20questioned.) [th Amendment to the U.S. and the world financial systems](https://www.sifma.org/resources/research/us-treasury-securities-statistics/), amounts to as dramatic a direct assault on the full faith and credit of the U.S. [the ‘Constitutional avoidance’ doctrine](https://www.law.uh.edu/faculty/adjunct/dstevenson/2018Spring/CANONS%20OF%20CONSTRUCTION.pdf), pursuant to which a plausible statutory interpretation that avoids raising a Constitutional problem is to be preferred to one that does not avoid such a conflict. Pursuant to this one, a law that on one interpretation yields a result that cannot possibly have been rationally intended, while on another interpretation yields a result that could indeed rationally have been intended, must be read in keeping with the latter, rationally intendable interpretation. until opportunistic politicians [beginning with Newt Gingrich](https://en.wikipedia.org/wiki/United_States_debt_ceiling) in 1995 rediscovered it in the U.S. Constitution](https://constitution.congress.gov/browse/amendment-14/#:~:text=Section%204%20Public%20Debt,rebellion%2C%20shall%20not%20be%20questioned.), more on which below, ratified by the former Confederate States as a condition on readmission to the Union. We cannot, in other words, rationally interpret Congress as having done with fiscal legislation what the apocryphal Kansas legislature was said to have done with the aforementioned railway legislation. [Congressional Budget and Impoundment Control Act of 1974](https://en.wikipedia.org/wiki/Congressional_Budget_and_Impoundment_Control_Act_of_1974), Congress has had ultimate control over the federal budget process, treating as merely advisory the President’s proposed budget each year. [it wasn’t fought over](https://en.wikipedia.org/wiki/United_States_debt_ceiling) by White Houses and Congress during the decades following 1917 … The idea here, common-sensibly enough, is that where two legislative enactments appear to conflict, the later enactment will be read as implicitly repealing the earlier one – at least as applied in any manner that yields conflict. [William Prosser casebook](https://www.westacademic.com/Prosser-Wade-Schwartz-Kelly-and-Partletts-Torts-Cases-and-Materials-14th-9781647081836) will recall an archaic Kansas statute, [apparently apocryphal](https://skeptics.stackexchange.com/questions/31257/was-there-a-law-ever-passed-that-prevented-two-trains-from-proceeding-at-a-cross), that Professor Prosser noted for tongue-in-cheek pedagogical purposes.

Democrats and the White House are adamant they won't agree to drastic spending cuts to discretionary programs, which fund the vast majority of federal agencies, ...

That’s not going to happen,” Manchin said from the World Economic Forum winter meeting in Davos, Switzerland. Government months into the future,” Yellen Such programs include Social Security, Medicare and Medicaid. Treasury Department uses accounting maneuvers to avoid defaulting on the debt. “This is an easy one. “We’re not getting rid of anything, and you can’t scare the bejesus out of people saying we’re going to get rid of Social Security, we’re going to privatize.

The cap on how much the government can borrow has become a political football, but the consequences are very real.

That is just a part of the financial structure of the world. “In the meantime, keep calm and carry on.” As was seen in 2011, the fear of the government not paying its bills and the creditworthiness of the U.S. In the end, cooler heads should prevail and some kind of increase, extension or negotiated budget deal will occur. “And if there’s less trust in the validity of U.S. “The debt ceiling is too important to turn into a game of chicken, and default should never be suggested by those with a fiduciary responsibility to govern the nation,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. At the same time, the Fed is raising interest rates to their highest levels in years and also reducing its own holding of government securities. Now, the economy is coming off its worst inflationary cycle since the early 1980s and the 10-year is yielding around 3.5%, but that is down significantly in recent weeks. “Washington is likely to come up with a compromise but the odds of failure are higher this time than they usually are.” With both houses of Congress controlled by different parties operating with very thin majorities – Democrats have a two-seat margin while Republicans have a nine-seat margin in the House – it takes only a few holdouts to cause havoc. [notified Congress that the government had reached the debt limit ](https://www.usnews.com/news/national-news/articles/2023-01-19/treasury-begins-extraordinary-measures-as-u-s-hits-debt-limit)and would begin implementing “extraordinary measures” that would allow it to meet his commitments. Republicans have linked any increase or extension in the debt ceiling to cuts in federal spending.

Fallon says the news that the government has hit its debt cap explains why “Mitch McConnell started an OnlyFans.”

Now look, I don’t — I didn’t like the guy, I don’t like the guy, I don’t. “Trump, meanwhile, is desperately trying to get back on Facebook. I’m actually surprised Trump wants to get back on Facebook. Here are the “If you ask me, this is where we could use Donald Trump. “You know it’s not a good situation when the Treasury Department is like, ‘Hey man, could you — could you, could you wait until next week to cash that check?” — JAMES CORDEN

The United States reached its $31.4 trillion debt ceiling on Thursday and the country is at its credit limit. Treasury Secretary Janet Yellen wrote a letter ...

There's actually legislation being introduced in Oklahoma and in Missouri that if enacted could allow a prosecutor to go after a patient, which again is something that kind of the mainstream message around the anti-abortion movement has been against. I spoke to the vice president of government affairs at SBA Pro-Life America, and she said that that day, Sunday, is about reflecting on how far the anti-abortion movement has come. ORIANA: The anti-abortion movement used to be united by the goal of removing Roe. I spoke to Rachel Carmona, the executive director of the Women's March, which happening actually on Sunday, the day of the anniversary. I think there are plenty of studies that show that women are often disproportionately targeted with hate because of what they wear or how they do politics or even, you know, the fact that they go to a party and dance when we know men in politics are doing the exact same thing and aren't getting that kind of hate. But this, this is a real crisis and one that a lot of democrats especially, is self-induced you know, the Republicans in the House are taking a hostage with a debt ceiling. I think she'll really be remembered for the way she handled the Covid pandemic and just generally how she was in politics. Republicans, now that they have the House majority believe that they should have some say in spending cuts, having the Democrats listen to what their voters had to say in the midterm elections. JOSH: Well, it means that the government can't pay its debts if we do get past the point of no return, and that could lead to a whole lot of chaos, whether it's in the markets or whether it's even in terms of paying entitlement, spending for social security. It's a sea change in what we're seeing, as far as the Republican political environment. Today: 50 years post-Roe, a split in the anti-abortion movement. ERICA: The United States reached its $31.4 trillion debt ceiling yesterday, and the country is at its credit limit.

Hard-right Republicans say no to 'clean' debt ceiling increase, raising dire possibility of US defaulting on financial obligations.

The demands from House Republicans strike Democrats as particularly outrageous because of their own bipartisan approach to the debt ceiling in the past. Some House Republicans now appear to be hoping for similar spending cuts in exchange for a debt ceiling hike, escalating the risk of a default. “We are not going to be negotiating over the debt ceiling,” the White House press secretary, Karine Jean-Pierre, said on Tuesday. At the time, Republicans had just regained control of the House and found themselves going toe to toe with Barack Obama over the debt ceiling. As of now, it remains unclear how the latest debt ceiling standoff will resolve itself. Something’s going to give,” Gray said. “But fiscal problems would be continuing to do business as usual.” The US has never failed to raise or suspend its debt ceiling, so most Americans are probably unfamiliar with the potential consequences of a default. Yellen urged Congress to work as quickly as possible to raise the debt ceiling and prevent the US from defaulting on any of its financial obligations, which would have catastrophic consequences. “And what’s benchmarked to the treasury? For many economic experts, the looming crisis has sparked grim flashbacks to the 2011 standoff over the debt ceiling. Setting aside the fact that individual members of Congress do not sign bills, the comments from lawmakers like Greene have intensified concerns over a potential default this summer.

The Treasury Department has started employing “extraordinary measures,” but the path to raising the debt ceiling is likely to be a long one.

[the House voted to reopen the federal Export-Import Bank](https://www.nytimes.com/2015/10/28/us/politics/house-votes-overwhelmingly-to-reopen-the-ex-im-bank.html), and the Republicans who joined Democrats to back the measure had the implicit support of the departing speaker, John A. Speaker Kevin McCarthy of California has called on the Biden administration and congressional Democrats to negotiate spending cuts in order to win Republican support in the House for raising the debt limit. Lawmakers must then collect 218 public signatures on the petition — meaning that at least a handful of Republicans will have to join every Democrat in publicly going against their party leaders. [debt limit](https://www.nytimes.com/article/debt-ceiling-us-economy.html?action=click&pgtype=Article&state=default&module=styln-debt-ceiling&variant=show®ion=MAIN_CONTENT_1&block=storyline_levelup_swipe_recirc), is a cap on the total amount of money that the federal government is authorized to borrow via U.S. The process is arduous and politically fraught, given that it undercuts the authority of the House speaker and procedural control of the floor. That formal notice essentially requires the speaker to then schedule a vote within two legislative days. But the threat of momentum behind a petition has often proved to be enough to pressure party leaders to hold votes on legislation they otherwise would not consider. She will also outline additional actions the Treasury can take to stay under the $31.4 trillion debt cap. Ultimately, it will be up to Congress to decide whether to let the country borrow more money or allow it to default on its debt by failing to pay investors who expect interest and other payments. What is the debt ceiling? The White House is expected to unveil its annual budget proposal in early March, outlining Mr. So far, House Republicans have vowed to oppose any increase in the debt limit without spending cuts.

The White House is refusing to negotiate with hardline Republicans on raising the debt ceiling because it believes enough of them will eventually back off ...

[Retail sales](/markets/us/us-retail-sales-drop-more-than-expected-december-2023-01-18/) fell the most in a year in December, suggesting [growth is ebbing](/markets/us/us-retail-sales-drop-more-than-expected-december-2023-01-18/) in the consumption-driven U.S. "We're doing better than any other major nation in the world today." The so-called "soft landing" is what the Federal Reserve is aiming for as well, though they have conceded that goal may be Democrats are planning to deploy that theme in the 2024 election even if an agreement is reached quickly on the debt ceiling. The game of chicken comes as the White House prepares Biden's expected re-election campaign. [elusive](/markets/us/feds-powell-soft-landing-chances-have-narrowed-2022-11-02/). But we similarly should not blindly increase the debt ceiling," Representative Chip Roy, a leading conservative, told Reuters. officials have repeatedly said they believe the economy's growth can slow to more sustainable levels, without putting people out of work. "Leading congressional Republicans have themselves admitted in the past that default would trigger an economic collapse, killing millions of jobs and decimating 401k plans," said White House spokesperson Andrew Bates told Reuters. We have the ability to manage servicing and paying our interest. The U.S. government might be forced to default on paying its debt.

The first-best solution to the standoff between President Joe Biden and the new Republican majority in the House would be for the latter to simply relent and ...

The only way to break that precedent and prevent the ceiling from being used as a hostage for decades to come is for the debt ceiling to end — by legislation if possible, by fiat if necessary. If Biden isn’t persuaded, we could be in for another decade of spending retrenchment and a lifetime of debt ceiling crises to come. [five-year Treasury bonds](https://fred.stlouisfed.org/series/DFII5) goes from, say, 1.42 percent to 1.75 percent (to use the GAO’s [higher-end estimate](https://www.gao.gov/assets/files.gao.gov/assets/gao-12-701.pdf#page=35) of what happened in 2011) … [“prioritize” payments](https://bipartisanpolicy.org/explainer/prioritization/), paying interest on debt and a few select government programs but otherwise skipping out on trillions in government bills, bond markets would almost certainly go nuts. The most boring involves issuing a [novel kind of debt](https://scholarship.law.duke.edu/faculty_scholarship/3228/) to [fund the government](https://www.joshbarro.com/p/a-boring-plan-for-managing-the-debt). This is not a problem unique to ideas like the 14th Amendment option or minting the coin. The matter would go to the courts. We know how bond markets respond to routine increases in the debt ceiling that are not attached to any other policies: they don’t at all. Banks like [Citigroup were openly declaring](https://www.bloomberg.com/news/articles/2022-10-14/truss-needs-to-go-too-for-uk-bonds-to-recover-say-citi-analysts) that unless the UK got a different prime minister, the markets would continue to punish it. And while the legal details and the politics matter, I think much of the discussion of these options gives short shrift to their biggest challenge: the bond market. But past speakers in his position, notably John Boehner in 2013, have [blinked and wound up passing a “clean” debt ceiling bill](https://www.washingtonpost.com/politics/house-effort-to-end-fiscal-crisis-collapses-leaving-senate-to-forge-last-minute-solution/2013/10/16/1e8bb150-364d-11e3-be86-6aeaa439845b_story.html) anyway. The funniest involves [minting a platinum coin](https://www.vox.com/22711346/trillion-dollar-coin-mintthecoin-debt-ceiling-beowulf) worth hundreds of billions or trillions of dollars.

House Speaker Kevin McCarthy (R-Calif.) is pressing for Democrats to come to the bargaining table and begin negotiations to address the nation's debt limit, ...

Eliminate all the money spent on ‘wokeism.’ Eliminate all the money that they’re trying to find different fuels and they’re worried about the environment to go through,” McCarthy said. Some Republicans have raised the prospect of leveraging the debt limit to secure potential changes to programs like Social Security and Medicare in recent months. However, the dragged-out fight, which experts say pushed the nation to the edge of default, also led to S&P downgrading the nation’s credit rating in a historic first. Strategists say McCarthy and Republicans also face more pressure to begin to come up with clearer goals for the party to work toward in debt limit talks. “Republicans need to have a very consistent clear message of what they’re trying to accomplish,” GOP strategist Dave Carney said on Thursday. Chip Roy (Texas), among the roughly 20 Republicans who had opposed McCarthy’s bid, said during a CNN appearance earlier this month. But it’s an approach that even GOP strategists say could be effective for the party, particularly as McCarthy works to find a plan his conference can get behind. Democrats, by contrast, have instead insisted on a clean bill to address the debt ceiling. “But Republicans can’t come up with a unified position, it seems like it’s a pretty smart strategy from their perspective.” “And I don’t know that anyone else could have effectively done that.” McCarthy called on the White House to start discussions this week. “Republicans are creating a crisis that need not exist,” Rep.

Generally, if the other party has the White House, lawmakers' support tends to drop. But there are notable differences between how the two parties behave.

As the Bush administration votes and the standoffs in 2011 and 2013 show, there are nuances in all of these numbers. But when there is a Democratic president and Republicans control at least one chamber, the GOP provides significantly fewer votes. When there is a Republican president and Democrats hold at least one chamber, Democrats have provided nearly as many votes as Republicans. These votes were largely symbolic, cast with the knowledge that a debt ceiling increase or suspension would be carried by GOP votes. (In the earlier situation, they ultimately struck the “sequester” deal with the Obama administration, while in the later fight they gave up when their effort failed, on the eve of a default.) But in Democratic administrations, those numbers decline to 24 percent and 20 percent, respectively.

Treasury Secretary Janet Yellen on Friday warned of the widespread global effects that could be felt if the federal government exhausts extraordinary ...

Also, it will suspend the reinvestment of a government securities fund of the Federal Employees Retirement System Thrift Savings Plan. “It would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world. “On top of that, a failure to make payments that are due, whether it’s the bondholders or to Social Security recipients or to our military, would undoubtedly cause a recession in the US economy and could cause a global financial crisis.” The effects of the federal government failing to make payments, she argued, could be as broad as a “global financial crisis.” And so far, Yellen’s warnings have failed to spark bipartisan discussion, with both Republicans and Democrats reaffirming their rigid positions over the past week. [Yellen said that after the measures are exhausted,](https://www.cnn.com/2023/01/19/politics/analysis-debt-ceiling-showdown-risks/index.html) the US could experience at a minimum downgrading of its debt as a result of Congress failing to raise the debt ceiling.

When the Treasury Department spends the maximum amount authorized under the ceiling, Congress must decide to suspend or raise the limit on borrowing. Economists ...

[looks at the role of the U.S. debt ceiling bring down other markets?](#chapter-title-0-5) [Does the government have any options if the ceiling is not raised?](#chapter-title-0-6) [Do other countries have similar policies?](#chapter-title-0-7) [Should the debt ceiling be revoked?](#chapter-title-0-8) [Recommended Resources](#chapter-title-0-9) Treasury Secretary Yellen falls into that camp, having argued that the debt ceiling is inherently harmful to the U.S. When the debt ceiling was set to expire in 2013, debate over the limit forced the government into a shutdown, and in 2021, the issue again came [down to the wire](https://www.cnbc.com/2021/12/16/biden-signs-debt-ceiling-increase-preventing-first-ever-us-default.html). The creditworthiness of U.S. Any hit to confidence in the U.S. [CFR’s Roger Ferguson to consider](https://www.cfr.org/in-brief/whats-stake-debt-ceiling-showdown) the once unthinkable prospect of a U.S. Goldman Sachs economists have estimated that a breach of the debt ceiling Since 1960, [Congress has increased](https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/debt-limit) the ceiling seventy-eight times, most recently in 2021. Created by Congress in 1917, the debt limit, or ceiling, sets the maximum amount of outstanding federal debt the U.S. Any change to the debt ceiling requires majority approval by both chambers of Congress. Efforts to raise or abolish the ceiling have become a topic of heated debate among policymakers; some lawmakers who decry government debt have used negotiations on altering the limit to try to force spending cuts.

Debt ceiling drama, inflation and stock market swings. Here are tips for finding a financial planner to help navigate tough times.

If you have money sitting around earning a little more than 1 percent, if that much, [I bonds are an attractive deal](https://www.washingtonpost.com/business/2022/11/01/i-bond-new-rate-689-percent/?itid=lb_bom--the-best-of-michelle-singletary-on-personal-finance_8). [napfa.org](http://www.napfa.org/)) can put you in touch with a fee-only planner. In many respects, you won’t know how good the advice is until you implement a recommended plan. Other credentials to look for: chartered financial consultant (ChFC) or certified public accountant (CPA) with a specialty designation as a personal financial specialist (PFS). [extraordinary measures](https://www.washingtonpost.com/business/2023/01/19/debt-ceiling-default/?itid=lk_inline_manual_5)” to keep the government from breaching its $31.4 trillion debt limit, a scenario that could lead to default and unleash fiscal calamity. Instead, the law says they only need to ensure their advice is “suitable” for the client. The Financial Planning Association is the membership organization for certified financial planner (CFP) professionals. The North American Securities Administrators Association can help locate your state regulator ( Don’t be shy about asking how the planner will be compensated. Before you dine at a new restaurant, you might go online to look at reviews, right? Planners with certain designations must meet specific educational and employment requirements and agree to abide by a code of ethics. A planner who works well with a friend or a relative still might not be right for you.

President Joe Biden said Friday that he would speak with House Speaker Kevin McCarthy about the debt ceiling, warning that failing to raise the nation's ...

“These are the kind of debates that we’re going to have.” The White House has hammered Republicans repeatedly over their suggestions that the government cut funding for Medicare and Social Security as part of a debt ceiling deal. “We’re going to have a little discussion on that,” he said at a White House event with city mayors. McCarthy earlier this week urged Biden and Democratic congressional leaders to begin discussions on a potential deal. Failing to do so for the first time ever, Democrats and a wide swathe of economists have cautioned, would destroy the nation’s financial credibility, tank the stock market and throw the global economy into chaos. had reached its debt limit](https://www.politico.com/news/2023/01/19/treasury-activates-extraordinary-measures-to-avoid-default-00078527) and would need to use special measures to avoid a default.

The White House had previously signaled it would be unwilling to negotiate, as talks of potential Republican cuts to Social Security and Medicare ramp up.

[The Debt Ceiling, Explained—What Happens If The U.S. Yellen said the moves should stave off a potentially catastrophic default through June 5, which has been dubbed the “X-date” for the national debt. Doesn’t Raise It](https://www.forbes.com/sites/anthonytellez/2023/01/19/the-debt-ceiling-explained-what-happens-if-the-us-doesnt-raise-it/?sh=68ba314c3488) (Forbes) [Kevin McCarthy Elected House Speaker—Ending Historic Deadlock](https://www.forbes.com/sites/nicholasreimann/2023/01/07/kevin-mccarthy-elected-house-speaker-ending-historic-deadlock/?sh=781846ae39f5) (Forbes) [Federal Government Officially Reaches Debt Limit, Triggering ‘Extraordinary Measures’ To Prevent A Default—Here’s What That Means](https://www.forbes.com/sites/saradorn/2023/01/19/federal-government-officially-reaches-debt-limit-triggering-extraordinary-measures-to-prevent-a-default-heres-what-that-means/?sh=62a0201fac18) (Forbes) has never defaulted on its debt in history. There’s speculation the GOP may push for cuts to programs like Social Security and Medicare, but such moves would be highly polarizing within the party. It’s not clear exactly what spending cuts Republicans might demand.

Treasury Secretary Janet Yellen on Friday warned that the U.S. government cannot choose to pay some bills over others if Congress fails to raise the ...

mayors that "we're going to have a discussion" with Republican House of Representatives Speaker McCarthy about raising the U.S. government hit](https://reut.rs/3HhFUNI) its $31.4 trillion borrowing limit on Thursday, a figure that reflects money already spent by the government. "It could cause a global financial crisis. Yellen [has informed](https://reut.rs/3wgIxc3) congressional leaders that her department had begun using extraordinary cash management measures to stave off default until early June. DAKAR/WASHINGTON Jan 20 (Reuters) - Treasury Secretary Janet Yellen on Friday warned that the U.S. She said the Treasury Department cannot prioritize its payments, as some Republicans have suggested.

The White House has said it won't negotiate with Republicans on raising the debt ceiling. The U.S. reached its borrowing limit a day ago, according to the ...

Ultimately, Congress and the White House reached a deal and increased the debt ceiling in August of that year. Still, White House press secretary Karine Jean-Pierre said in a briefing Friday that the president "is looking forward to meeting with Speaker McCarthy" about topics including the debt ceiling. "President Biden looks forward to meeting with Speaker McCarthy to discuss a range of issues, as part of a series of meetings with all new congressional leaders to start the year," Jean-Pierre said.