--- title: The Debt Ceiling Crisis, Explained description: Over the past 30 years, the United States has faced four separate debt ceiling crises – in 1995, 2011, 2013, and 2018. Find out the overall trend. image: https://www.grassrootspulse.com/hubfs/5%20things%20to%20know%20about%20US%20Debt%20Ceiling%20fight%20featured%20image.jpg --- [![Grassrotos Pulse](https://www.grassrootspulse.com/hs-fs/hubfs/grassroots%20pulse%20logo%20-%20minimal%20version%20PNG-1.png?width=3397&height=366&name=grassroots%20pulse%20logo%20-%20minimal%20version%20PNG-1.png "Grassrotos Pulse")](https://www.grassrootspulse.com/) - [Home](https://www.grassrootspulse.com) - [News](https://www.grassrootspulse.com/news) - [About](https://www.grassrootspulse.com/about) - [Contact](https://www.grassrootspulse.com/contact) [How Effective is COVID-19 Economic Stimulus?](https://www.grassrootspulse.com/covid-19-economic-stimulus-white-paper/) # The Debt Ceiling Crisis, Explained [Grassroots Pulse Staff](https://www.grassrootspulse.com/news/author/grassroots-pulse-staff) April 06, 2023 ###### [Government Spending,](https://www.grassrootspulse.com/news/tag/government-spending) [Interest Rates,](https://www.grassrootspulse.com/news/tag/interest-rates) [Featured,](https://www.grassrootspulse.com/news/tag/featured) [Campaign Finance](https://www.grassrootspulse.com/news/tag/campaign-finance) Over the past 30 years, the United States has faced [four separate debt ceiling crises](https://en.wikipedia.org/wiki/History_of_the_United_States_debt_ceiling) – in 1995, 2011, 2013, and 2018. The overall trend? Discussions about the Federal Government’s ability to go into new debt are now a permanent feature of our political system. Crisis situations are growing increasingly frequent, and each time, the markets hold their breath to see how they will resolve. But what is the current debt ceiling crisis all about? What is at stake on each side? Here are five things you should know about them. ## **What is the debt ceiling crisis?** The “debt ceiling” is the legal limit that determines how much debt the Federal Government (and specifically, the Treasury) can hold at a time. The easiest way to explain it would be to compare it to the nation’s credit card limit: as long as we stay within that limit, the Treasure can manage its own debt largely independently. However, once we “max out” that amount, it needs approval from Congress to raise it. A debt ceiling crisis occurs when the nation approaches this limit, and Congress doesn’t step in to approve a raise. The Federal Government is running at a near-constant deficit, so without further debt, it may find itself unable to pay for its expenses. ## **How Long Do We Have to Fix It?** According to Treasury Secretary Janet Yellen, if the debt ceiling is not raised before June 1st, 2023, the nation will start to default on some of its due payments. This deadline is particularly tight, as both House and Senate have relatively few working days throughout May 2023. The House will recess for the first week in May, while the Senate will have a 10-day holiday starting May 18th. As a result, President Biden has called for an emergency meeting on May 9th. This is immediately after the House returns, and should kick start the process to reach an agreement before the Senate leaves. In this meeting, Biden will meet with the party leaders from both House and Senate. ## **How Can We Fix It?** In short, both chambers of Congress need to approve raising the debt ceiling before the June 1st deadline. This requires a simple majority in the House, where Republicans have a slight majority. However, in the Senate, they need at least 60 votes. Here, the Democrats have a very slight majority, but that alone won’t be enough to pass the bill. ## **Why is an Agreement Still Pending?** Most economists agree that raising the debt ceiling is necessary. However, each party has differing opinions regarding the conditions under which the bill should pass. For most House and Senate Democrats, the debt ceiling should be raised with no preconditions: it is a matter of national urgency, not a time to seek political favor. They want a “clean” bill that deals with the problem directly and nothing else. Many Republicans oppose this, as they see the debt ceiling crisis as a symptom of a deeper problem. Therefore, they want the bill to include specific steps that will help curb Federal spending, and at least delay the need for the next increase. ## **What Happens if There’s No Agreement?** If the debt ceiling is not raised before June 1st, the government won’t have enough money to cover its expenses. This will mean: - It may need to shut down some of its non-essential offices and programs, sending thousands of workers home. - It may miss some of its upcoming debt payments, which would deeply damage its credit rating and international standing. - McCarthy’s position as House Speaker will likely be questioned, which will allow his opponents to oust him. - The overall political atmosphere will further deteriorate ahead of the upcoming election year. --- *[Grassroots Pulse](https://www.grassrootspulse.com/) covers public policy and political issues aimed at engaging highly-active policy makers, donors, and grassroots leaders at the forefront of the political process in America today.* [Grassroots Pulse Staff](https://www.grassrootspulse.com/news/author/grassroots-pulse-staff) Share this article on [mailto:?subject=Check%20out%20The%20Debt%20Ceiling%20Crisis,%20Explained%20&body=Check%20out%20https://www.grassrootspulse.com/news/the-debt-ceiling-crisis-explained](mailto:?subject=Check%20out%20The%20Debt%20Ceiling%20Crisis,%20Explained%20&body=Check%20out%20https://www.grassrootspulse.com/news/the-debt-ceiling-crisis-explained) ##### Read more - [American Association of Political Consultants: No AI Content on Generative Campaigns](https://www.grassrootspulse.com/news/no-ai-content-on-generative-campaigns) - [The Debt Ceiling Fight: Who’s Lobbying for What?](https://www.grassrootspulse.com/news/the-debt-ceiling-fight-whos-lobbying-for-what) - [How a US Federal Government Default Could Affect You](https://www.grassrootspulse.com/news/how-a-us-federal-government-default-could-affect-you) ## Further Reading [![Four Key Lessons from the CBO's Long-Term Budget Outlook](https://www.grassrootspulse.com/hs-fs/hubfs/fabian-blank-pElSkGRA2NU-unsplash.jpg?width=300&name=fabian-blank-pElSkGRA2NU-unsplash.jpg)](https://www.grassrootspulse.com/news/four-key-lessons-from-the-cbos-long-term-budget-outlook) ###### [Government Spending,](https://www.grassrootspulse.com/news/tag/government-spending)[Studies,](https://www.grassrootspulse.com/news/tag/studies)[Interest Rates,](https://www.grassrootspulse.com/news/tag/interest-rates)[Monetary Policy,](https://www.grassrootspulse.com/news/tag/monetary-policy)[Featured,](https://www.grassrootspulse.com/news/tag/featured)[Campaign Finance](https://www.grassrootspulse.com/news/tag/campaign-finance) ##### [Four Key Lessons from the CBO's Long-Term Budget Outlook](https://www.grassrootspulse.com/news/four-key-lessons-from-the-cbos-long-term-budget-outlook) Earlier this year, the Congressional Budget Office (CBO) published a massive report on the possible... [Read More](https://www.grassrootspulse.com/news/four-key-lessons-from-the-cbos-long-term-budget-outlook) [![The Debt Ceiling Fight: Who’s Lobbying for What?](https://www.grassrootspulse.com/hs-fs/hubfs/Which%20industries%20are%20lobbying%20on%20the%20Debt%20Ceiling%20fight.jpg?width=300&name=Which%20industries%20are%20lobbying%20on%20the%20Debt%20Ceiling%20fight.jpg)](https://www.grassrootspulse.com/news/the-debt-ceiling-fight-whos-lobbying-for-what) ###### [Insider,](https://www.grassrootspulse.com/news/tag/insider)[Monetary Policy,](https://www.grassrootspulse.com/news/tag/monetary-policy)[State & Federal Budgets,](https://www.grassrootspulse.com/news/tag/state-federal-budgets)[Featured](https://www.grassrootspulse.com/news/tag/featured) ##### [The Debt Ceiling Fight: Who’s Lobbying for What?](https://www.grassrootspulse.com/news/the-debt-ceiling-fight-whos-lobbying-for-what) *Update*: In the late hours of May 31, 2023, the House of Representatives has passed a bill to... [Read More](https://www.grassrootspulse.com/news/the-debt-ceiling-fight-whos-lobbying-for-what) #### Subscribe to our newsletter Sign up for our newsletter to receive the latest updates on new topics, events and more. You will also get a chance at special discounts only available through this channel! ![grassroots pulse logo - minimal version PNG-2](https://www.grassrootspulse.com/hubfs/grassroots%20pulse%20logo%20-%20minimal%20version%20PNG-2.png "grassroots pulse logo - minimal version PNG-2") Grassroots Pulse 1201 Connecticut Avenue NW, Suite 600 Washington, DC 20036 [info@grassrootspulse.com](mailto:info@grassrootspulse.com) (202) 684-8254  --- Copyright 2025 Grassroots Pulse