Debt ceiling: Will it be raised and what could happen if it doesn’t? | Just the FAQs


Democrats and Republicans are battling over what to do about the federal debt limit. Here’s what will happen if the U.S. defaults on its debt. RELATED: https://bit.ly/3kvCfjO

WASHINGTON – Democratic and Republican leaders clashed over funding the federal government and raising the nation’s limit on borrowing, leaving the issues unresolved as Democratic leaders unveiled a plan for voting on both at once.

The problem is two-fold. Congress hasn’t approved funding for the government for the year that begins Oct. 1, so lawmakers need a temporary spending measure by then. The so-called continuing resolution would keep the government functioning until year-long legislation is approved.

In addition, Treasury Secretary Janet Yellen has warned that the country will reach its limit on borrowing in mid-October, so the ceiling must be raised.

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