Federal Debt and the Statutory Limit

The amount of the debt limit or debt ceiling is set by law and has been increased or suspended over the years to allow for the additional borrowing needed to finance the government’s operations.

On December 16, 2021, lawmakers raised the debt limit by $2.5 trillion to a total of $31.4 trillion. On January 19, 2023, that limit was reached, and the Treasury announced a “debt issuance suspension period” during which, under current law, it can take well-established “extraordinary measures” to borrow additional funds without breaching the debt ceiling.