The debt ceiling, also known as the debt limit, is the maximum amount of money that the U.S. Treasury can borrow. Increasing the debt ceiling allows the Treasury to borrow funds to pay for government obligations that have already been incurred as the result of laws and budgets approved by the President and the Congress.
Legislation signed into law in July 2025 extends the debt ceiling by $5 trillion — from $36.1 to $41.1 trillion.
Why is understanding the debt ceiling important and what are the implications for our economy and our fiscal condition? The infographic below explains. For more details, see our analysis on the debt ceiling.
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Further Reading
The United States Spends More on Defense than the Next 6 Countries Combined
Defense spending by the United States accounted for nearly 40 percent of military expenditures by countries around the world.
How Much Does the Government Spend on International Affairs?
Federal spending for international affairs, which supports American diplomacy and development aid, is a small portion of the U.S. budget.
The Highway Trust Fund Explained
The funding structure of the Highway Trust Fund requires serious, long-term changes, but how to approach reform remains a topic of debate.