Debt ceiling: Will it be raised and what could happen if it doesn’t? | Just the FAQs

From USA TODAY.

Democrats and Republicans are battling over what to do about the federal debt limit. Here’s what will happen if the U.S. defaults on its debt. RELATED: https://bit.ly/3kvCfjO

WASHINGTON – Democratic and Republican leaders clashed over funding the federal government and raising the nation’s limit on borrowing, leaving the issues unresolved as Democratic leaders unveiled a plan for voting on both at once.

The problem is two-fold. Congress hasn’t approved funding for the government for the year that begins Oct. 1, so lawmakers need a temporary spending measure by then. The so-called continuing resolution would keep the government functioning until year-long legislation is approved.

In addition, Treasury Secretary Janet Yellen has warned that the country will reach its limit on borrowing in mid-October, so the ceiling must be raised.

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