The U.S. Budget

Infographic: What Is the Debt Ceiling?

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.

What Is the Debt Ceiling?

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Tweet: The #DebtLimit has been raised frequently in the past — 28 times since the beginning of 1993. https://ctt.ec/cbdDl+ via @pgpfoundation

Since the beginning of 1993, policymakers have raised the debt ceiling 28 times.

Tweet: Policymakers have come together repeatedly over the years to avoid default by raising the #DebtCeiling — no matter which party is in power. https://ctt.ec/vebm5+ via @pgpfoundation

While the U.S. has always paid its bills, we still have not addressed our fiscal policies and the limit on our national debt has grown.

Last Updated September 5, 2025

Further Reading

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The Four Key Institutions in the Federal Budget Process

Four institutions provide the analytical foundation for nearly every federal budget decision.

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Budget Basics: National Defense

The national defense budget funds a wide range of activities and represents a significant share of overall federal spending.

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Infographic: The Facts About U.S. Defense Spending

National security is both a vital priority and a significant part of the federal budget.