The US debt ceiling is the legal cap on federal borrowing, $41.104 trillion since a $5 trillion increase signed on 4 July 2025. Major standoffs came in 1995-96…
The Second Liberty Bond Act of 24 September 1917 set an aggregate borrowing cap to finance World War I.
After a last-minute increase, some Treasury bills were paid days late. Treasury called it a processing glitch.
Treasury used unusual steps from September. The increase came with deficit targets and automatic cuts.
Gingrich tied an increase to a balanced budget. The limit rose to $5.5 trillion on 29 March 1996.
Rescues, stimulus and recession pushed the limit from $9.8 to $14.3 trillion by February 2010.
The deal was signed on the X-date. S&P cut the US to AA+ three days later. GAO: about $1.3bn extra cost.
The No Budget, No Pay Act paused the limit to 18 May instead of naming a dollar figure.
A 16-day shutdown ran into a 17 October X-date. A deal reopened government and suspended the limit.
Suspensions in 2014, 2015, 2017, 2018 and 2019 passed with few market jitters.
A short-term $480bn rise in October, then $2.5 trillion to $31.4 trillion on 16 December.
The Fiscal Responsibility Act, signed two days before the X-date, suspended the limit to January 2025. Fitch then cut to AA+.
Public Law 119-21 raised it to $41.1 trillion. Moody's had cut the US to Aa1 in May.
Debt was about $40.31 trillion on 8 October 2026, roughly $0.8 trillion under the cap.
CRS expects the limit in fiscal 2027. BPC says late winter to mid-summer 2027, then 6-9 months of measures.
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