Debt Limit Q&A
Democrats and Republicans are once again in a standoff over a looming debt limit crisis. Congress must raise or suspend the limit on federal borrowing soon or the U.S. government won’t be able to pay its bills.
Here we provide the facts on the political dispute.
What is the debt limit?
The debt limit is a cap on how much the Treasury Department can borrow to fund federal operations. Congress sets the debt limit, as required by federal law and consistent with the Constitution, which gives Congress the “power of the purse.”