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[[File:Spending increase of the Pelosi-Reid and Obama era.JPG|thumb|380px|'''''The unsustainable path of spending increases of the [[110th United States Congress|Pelosi-Reid]] and [[Obama]] era.''''' Source:Federal Reserve Board]]

[[File:Spending increase of the Pelosi-Reid and Obama era.JPG|thumb|380px|'''''The unsustainable path of spending increases of the [[110th United States Congress|Pelosi-Reid]] and [[Obama]] era.''''' Source:Federal Reserve Board]]

The '''Federal Debt Limit''', commonly known as the '''debt ceiling''', is the overall limit on federal government borrowing, as authorized by [[Congress]].  It is similar to an individual's credit card limit. The [[One Big Beautiful Bill]] Act, passed by [[Congress]] on July 3, 2025, increased the debt ceiling by another $5 trillion to $41 trillion, roughly 75% the value of the entire [[U.S.]] [[stock market]]s. '''''The [[U.S.]] is in a worsening [[debt spiral]], whereby large new debt is used to repay old debt'''''.

The '''Federal Debt Limit''', commonly known as the '''debt ceiling''', is the overall limit on federal government borrowing, as authorized by [[Congress]].  It is similar to an individual's credit card limit. As of early July 2025, the U.S. debt was nearly $36 trillion.<ref>https://www.yahoo.com/finance/news/us-debt-now-37trn-worried-212745718.html</ref>

 

The [[One Big Beautiful Bill]] Act, passed by [[Congress]] on July 3, 2025, increased the debt ceiling by another $5 trillion to $41 trillion, roughly 75% the value of the entire [[U.S.]] [[stock market]]s. '''''The [[U.S.]] is in a worsening [[debt spiral]], whereby massive new debt is necessary to repay old debt'''''. "The founder of the world's biggest hedge fund, Ray Dalio, believes that US borrowing is at a crossroads. On its current trajectory he estimates the US will soon be spending $10tn a year in loan and interest repayments."<ref>[https://www.yahoo.com/finance/news/us-debt-now-37trn-worried-212745718.html Simon Jack, BBC Business Editor, "US debt is now $37tn – should we be worried?" (July 5, 2025)].</ref>

As of November 22, 2024, the debt of the [[United States]] exceeded $36 trillion.<ref>https://www.pgpf.org/article/the-national-debt-is-now-more-than-36-trillion-what-does-that-mean/</ref> "The last time the debt ceiling was reached, in January 2023, the figure stood at $31.4 trillion. Under a deal reached in June that same year, Congress suspended the debt ceiling until 1 January, 2025."<ref>https://www.bbc.com/news/articles/cr4r3rped5qo</ref>

As of November 22, 2024, the debt of the [[United States]] exceeded $36 trillion.<ref>https://www.pgpf.org/article/the-national-debt-is-now-more-than-36-trillion-what-does-that-mean/</ref> "The last time the debt ceiling was reached, in January 2023, the figure stood at $31.4 trillion. Under a deal reached in June that same year, Congress suspended the debt ceiling until 1 January, 2025."<ref>https://www.bbc.com/news/articles/cr4r3rped5qo</ref>