US Debt Ceiling Bill - Summary
The House of Representatives has passed the US Debt Ceiling Bill on Wednesday, 31st May 2023, and it now moves on to the Senate for further consideration.
Also referred to as the debt limit, this US Debt Ceiling Bill sets a cap on the total amount of money the government can borrow to cover its expenses.
This includes essential payments for federal employees, the military, Social Security and Medicare, along with interest on the national debt and tax refunds.
Periodically, the US Congress votes to raise or suspend the ceiling, allowing for increased borrowing when necessary.
Currently, the cap stands at approximately $31.4 trillion (£25.2 trillion). The limit was exceeded in January, but the Treasury Department employed “extraordinary measures” to provide the government with additional cash while determining the next steps.
Traditionally, it has been a routine action for Congress to raise the limit as required. However, in recent years, as the political parties have become more divided, reaching an agreement on the terms has proven challenging.
Treasury Secretary Janet Yellen has indicated that without additional borrowing, the US will struggle to meet all its financial responsibilities as early as 5 June.
Highlights of US Debt Ceiling Bill / Debt Ceiling Deal
Here are the key features of this important legislation, with insights from BBC North America correspondent Nomia Iqbal.
- Debt ceiling suspended until 2025
- Spending caps imposed, excluding defense
- Unspent Covid funds returned
- Minor adjustments to welfare, with no major changes
- Increased funding to enforce tax regulations on wealthy Americans
- Simplified process for obtaining energy project permits
- No relief for student loans
- No new taxes introduced
- Protection for the Inflation Reduction Act’s clean energy and climate initiatives
Download the complete PDF of the US Debt Ceiling Bill / Debt Ceiling Deal using the download link below.
Source – BBC News
-
Credit Guarantee Scheme for Subordinate Debt (CGSSD) – Guidelines
-
Kerala Farmer’s Debt Relief Application Form Malayalam
-
Aatmanirbhar Bharat Rozgar Yojana
-
Bangla Shasya Bima (BSB) Revised Operational Guidelines
-
Mahatma Jyotirao Phule Shetkari Karj Mafi Yojana Details Marathi
-
Odisha Kalia Yojana Final Beneficiaries List
-
TDS Section List 2025-25
-
Maharashtra Budget 2024