In Pics: Here’s a low-down on US’ debt ceiling crisis and what happens to the bill now
US House has passed the debt ceiling bill just days before the country is about to start defaulting on its debt. Here’s a low-down on US’ debt ceiling crisis and what happens to the bill now
On May 31, the US House of Representatives passed the debt ceiling bill, allowing the US government to borrow more money for its expenses, days before it is due to start defaulting on its debt. (Image: News18 Creative)
2/11
The debt ceiling is the maximum amount of money that the United States can borrow cumulatively by issuing bonds. (Image: News18 Creative)
3/11
Since 2001, the US government has run a deficit of nearly $1 trillion every year. It means it spends $1 trillion more than it receives in taxes and other revenue. (Image: News18 Creative)
4/11
When the debt soars, the Treasury borrows more money to pay for government spending. Reaching the debt ceiling means that the Treasury is unable to borrow any more money. (Image: News18 Creative)
A divided U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling. (Image: News18 Creative)
6/11
Since 1960, the US debt ceiling has been raised, extended or revised 78 times (excluding 2023). (Image: News18 Creative)
7/11
A big debt is a reflection of the fact that the US has consistently spent more than it raised. (Image: News18 Creative)
8/11
On May 31, the House of Representatives passed the bill to suspend the US’ current debt ceiling, with majority support from both Democrats and Republicans. (Image: News18 Creative)
Republicans control the House by a narrow 222-213 majority, and had been demanding drastic spending cuts (with an intention to dilute the Democrats’ agenda) to extend the debt ceiling. (Image: News18 Creative)
10/11
The bill now heads to the Senate, which will enact the measure and get it to President Hoe Biden’s desk. The bill must reach Biden’s desk for his signature before June 5, when the federal government is expected to run out of money. (Image: News18 Creative)
11/11
“This agreement is good news for the American people and the American economy. I urge the Senate to pass it as quickly as possible so that I can sign it into law,” said US President Joe Biden after the House passed the bill. (Image: News18 Creative)
