The U.S. debt ceiling or debt limit is a legislative limit on the amount of national debt that can be issued by the US Treasury. The debt ceiling limits how much money the federal government may borrow.
The federal government’s power to borrow money to pay its bills sets to expire Thursday, March 16th. If the U.S. Congress does not increase the debt limit by Thursday, the Treasury Department will be forced to use “extraordinary measures” to keep raising cash to pay the government’s bills. If Congress takes no action by March 16th, the U.S. government would default on its debts for the first time.
Photo Credit: USDebtClock.org