The United States has nearly reached its $31.4 trillion debt ceiling, so the Treasury must now manage the nation’s bills without resorting to borrowing.
That’s a challenge because the government operates on a deficit budget, spending more money than it takes in. Normally the Treasury borrows to cover the shortfall. But Congress places a limit on the amount of debt the country can hold.
Since the debt ceiling was reached on Jan. 19, Treasury Secretary Janet Yellen has been using “extraordinary measures” authorized by Congress to keep payments current.
U.S. Treasury Secretary Janet Yellen testifies on Capitol Hill, Washington, D.C., on June 8, 2022. (Jonathan Ernst/Reuters)
Though called extraordinary, these actions have been taken before when the country neared the debt ceiling….