The debt ceiling explained.
If you’ve been following the news and wondering what the “debt ceiling” even is and why it’s important, you’re not alone. That’s why today, we’re going to borrow Katie’s whiteboard and explain the basics.
But first—if you can afford to make a donation to support our campaign, please consider making a contribution today. Katie Porter will be a warrior for all working people in the Senate and stand up against extremist Republicans.
|
What is the debt ceiling? How is debt accrued?
The debt ceiling is the maximum amount of money the U.S. government is authorized to borrow in order to pay its bills. The United States’ “bills” include all sorts of things—from paying our military service members to sending you a tax refund.
|
|
Why is the debt ceiling in the news right now?
Last month, the U.S. government hit the debt ceiling. That means, until the debt ceiling is raised by Congress, the federal government can’t borrow any more money. Bills are being paid right now by Treasury Secretary Janet Yellen, who has taken “extraordinary measures,” such as suspending new investments in government retirement funds in order to do so. But even then, she said that she will only be able to do this until June if Congress does not raise the debt ceiling.
|
|
So why hasn't Congress raised the debt ceiling yet?
Extremist Republicans are blaming Democrats and President Biden for the country hitting the debt ceiling. You may remember some of them suggested cuts to vital programs like Medicare and Social Security, even though, by law, Social Security adds $0 to our national debt.
|
Here’s the truth, John: Both parties have raised the debt ceiling and accrued debt. This isn’t a matter of partisan politics—it’s a matter of whether or not our country can pay its bills.
If Republicans refuse to raise the debt ceiling in an attempt to score political points, we could default on our debts, which would be disastrous for our economy and government programs.
Consider chipping in to help send Katie to the U.S. Senate, where she’ll fight back against extremist Republicans and petty partisan politics.
Donate ›››
We hope this explainer helped. We’ll keep you updated as this continues to unfold.
—Katie Porter for California
