Fact Check: The U.S. national debt limit was last raised in 2023.

Fact Check: "The U.S. national debt limit was last raised in 2023."

What We Know

The U.S. national debt limit, also known as the debt ceiling, is the maximum amount of money that the federal government is allowed to borrow to meet its existing legal obligations. On June 3, 2023, the debt limit was suspended, allowing for additional borrowing until January 1, 2025. This suspension was part of the Fiscal Responsibility Act, which aimed to prevent a government shutdown and ensure that the government could continue to meet its financial obligations without defaulting on its debt (Congress.gov, CBO).

When the debt limit was suspended, it allowed the Treasury to borrow as needed to finance government operations without being constrained by the previous limit. The debt limit was reinstated on January 2, 2025, at $36.1 trillion, reflecting the total federal debt at that time (Congress.gov, Treasury.gov). Therefore, the last action taken regarding the debt limit was a suspension in 2023, not a formal increase.

Analysis

The claim that "the U.S. national debt limit was last raised in 2023" is somewhat misleading. While it is true that the debt limit was suspended in 2023, suspending the debt limit does not equate to raising it in the traditional sense. Instead, it temporarily removes the cap, allowing the government to borrow freely until the suspension ends.

The suspension means that the Treasury can issue debt without being limited by a specific ceiling until the suspension period concludes. After the suspension, the debt limit is automatically adjusted to reflect the amount of debt incurred during that period (BPC Action).

The distinction is important: suspending the debt limit allows for increased borrowing without a formal increase in the ceiling itself. Thus, while the suspension effectively allows for more borrowing, it does not constitute a direct increase in the debt limit as defined by legislation.

In evaluating the reliability of the sources, the Congressional Budget Office (CBO) and Congress.gov are credible and authoritative sources on federal financial matters. They provide detailed, factual information regarding the national debt and the mechanisms surrounding the debt limit (CBO, Congress.gov).

Conclusion

The claim that "the U.S. national debt limit was last raised in 2023" is True in the context that the debt limit was indeed suspended, allowing for increased borrowing. However, it is crucial to clarify that this suspension does not represent a formal increase in the debt limit itself, which was reinstated at a later date. Thus, while the statement is technically accurate, it lacks the nuance necessary for a complete understanding of the situation.

Fact Check: The U.S. national debt limit was last raised in 2023.