Fact Check: The U.S. has a federal debt ceiling that can be raised by Congress
What We Know
The federal debt ceiling is a legally established limit on the amount of money that the U.S. Treasury can borrow to cover the government's existing obligations. This ceiling can indeed be raised by Congress, which holds the constitutional authority to borrow on behalf of the United States (Brookings Institution, U.S. Department of the Treasury).
Historically, Congress has acted numerous times to raise or suspend the debt ceiling. For instance, in December 2021, Congress raised the debt ceiling from $28.9 trillion to $31.4 trillion, allowing the Treasury to continue borrowing until the new limit was reached (Brookings Institution). The debt ceiling has been suspended multiple times, with the most recent suspension set to expire on January 1, 2025, at which point the ceiling will be reinstated at a level that reflects the borrowing that occurred during the suspension (U.S. Department of the Treasury, Wikipedia).
Analysis
The claim that the U.S. has a federal debt ceiling that can be raised by Congress is supported by a variety of credible sources. The Brookings Institution explains that the debt ceiling is a limit set by Congress, which has the authority to raise or suspend it as needed to allow the Treasury to meet its obligations (Brookings Institution).
The U.S. Department of the Treasury also confirms that Congress has acted 78 times since 1960 to adjust the debt ceiling, indicating a long-standing practice of raising or suspending the limit to accommodate government borrowing needs (U.S. Department of the Treasury). Furthermore, the Congressional Research Service outlines the process and implications of reaching the debt ceiling, emphasizing that Congress must pass legislation to raise or suspend the limit to avoid default (Congressional Research Service).
The reliability of these sources is high, as they include established institutions like the Brookings Institution and the U.S. Department of the Treasury, which are recognized for their expertise in fiscal policy. Additionally, the historical context provided by these sources illustrates that the debt ceiling is not merely a theoretical concept but a practical mechanism that has been actively managed by Congress over decades.
Conclusion
Verdict: True
The claim that the U.S. has a federal debt ceiling that can be raised by Congress is accurate. The evidence shows that Congress has the constitutional authority to set and adjust the debt ceiling, and it has done so multiple times in response to the government’s borrowing needs. The sources consulted are credible and provide a comprehensive understanding of the debt ceiling's function and the legislative process involved in raising it.
