Debt Ceiling

The debt ceiling is a cap set by Congress on the amount of money the U.S. government is allowed to borrow to cover expenses. When the government spends more than it receives in revenue, it borrows to finance the difference. If borrowing reaches the debt ceiling, the government cannot take on more debt unless Congress raises or suspends the limit. This can lead to potential financial crises if the ceiling isn't adjusted, as it may prevent the government from meeting its obligations, impacting services and even leading to default on loans.