U.S. government likely to reach debt ceiling Thursday
WASHINGTON, D.C. (KDKA) -- The United States is expected to reach its debt limit on Thursday.
The last time the country came close to hitting the debt ceiling was back in 2011 under the Obama administration.
The U.S. is $31.4 trillion in debt and it looks more and more likely our country will hit the debt ceiling today with the Biden administration and House Republicans refusing to budge.
The debt limit, established by Congress, is the maximum amount that the federal government can borrow to pay its bill.s
After the U.S. reaches its borrowing gap, the Treasury Department will start enacting extraordinary measures to postpone a default.
The Biden administration is calling on lawmakers to come up with a solution, but some Republicans say the White House should reduce its own spending.
President Biden has been refusing to make future budget cuts that Republican House Speaker Kevin McCarthy is pushing for.
"It is essential for Congress to recognize that dealing with the debt ceiling is their constitutional responsibility." said Karine Jean-Pierre, White House Press Secretary. "This is an easy one. This is something that should be happening without conditions."
"If you had your child and you gave him a credit card, and they kept raising it, and they hit the limit so you've just raised it again, clean increase, and again and again, would you just keep doing that? Or would you change the behavior?" asked Rep. and House Speaker Kevin McCarthy (R-CA)
Here's how you will be impacted when the debt ceiling is breached.
The U.S. will eventually start to default on loans, possibly impacting the following:
- Social Security
- Government employee salaries
- Veterans benefits
- Medicare benefits
- A potential for a crashing stock market
The Treasury Department can take measures to give Congress and President Biden until around June to come up with an agreement.
