The debt ceiling is the maximum amount of federal debt that the government may incur. This cap ostensibly encourages fiscal responsibility and deficit management. The debt ceiling may change according to spending needs, revenue adjustments, and political tides.
The Constitution grants Congress authority to spend and tax. In turn, legislators pass a budget each year. This process reconciles spending obligations with revenues. Any shortfall adds to federal debt totals. The debt ceiling is a separate but crucial element to this procedure. This limit can only be changed via Congressional vote.
Once a routine process, debt ceiling negotiations have become contentious in recent years. These events require concessions and compromise between the two parties. The last time legislators raised the debt ceiling was 2011. Congress opted to simply suspend the debt ceiling entirely in 2013 and 2019. Each resolution funded government obligations before the dreaded X-Date.
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