Fact Check: The U.S. government risks breaching the debt ceiling periodically.

Fact Check: The U.S. government risks breaching the debt ceiling periodically

What We Know

The U.S. government operates under a statutory debt limit, which is the maximum amount of debt that the Department of the Treasury can issue to finance government operations. As of January 2, 2025, this limit was reinstated at $36.1 trillion, following a suspension that had been in place since June 2023 (Congress.gov). The Congressional Research Service (CRS) indicates that the federal debt includes both debt held by the public and intragovernmental accounts, which are constrained by this limit (Congress.gov).

The Congressional Budget Office (CBO) has projected that if the debt limit remains unchanged, the government will likely exhaust its ability to borrow using "extraordinary measures" by August or September 2025 (CBO). These extraordinary measures are temporary accounting maneuvers that allow the Treasury to continue funding government operations without breaching the debt ceiling.

Analysis

The claim that the U.S. government risks breaching the debt ceiling periodically is supported by multiple credible sources. The CRS report outlines the statutory nature of the debt limit and its implications for federal borrowing, emphasizing that the government must navigate these limits to avoid defaulting on its obligations (Congress.gov). The CBO's estimates provide a timeline for when the government may face a breach if Congress does not act to raise or suspend the debt ceiling, reinforcing the notion that such risks are not only possible but likely under current fiscal conditions (CBO).

The reliability of these sources is high, as both the CRS and CBO are nonpartisan entities that provide analysis and information to Congress. Their reports are based on comprehensive data and are widely regarded as authoritative in discussions about federal fiscal policy.

In contrast, other sources, such as news articles, may present varying perspectives on the implications of breaching the debt ceiling, but they often rely on the foundational data provided by the CRS and CBO. For instance, a recent article from Reuters discusses the Treasury's efforts to extend measures to avoid a debt ceiling breach, indicating the urgency of the situation (Reuters).

Conclusion

The verdict on the claim that "The U.S. government risks breaching the debt ceiling periodically" is True. The evidence from authoritative sources like the CRS and CBO confirms that the government operates under a strict debt limit, and projections indicate that without legislative action, it is likely to face a breach of this limit in the near future.