EXPAND - The debt ceiling is a statutory limit set by Congress on the total amount of debt the federal government can accumulate. When the government reaches this limit, Congress must vote to raise or suspend the ceiling to allow the government to continue borrowing and paying its existing financial obligations. The debt ceiling debate has become increasingly politicized, with the newly Republican-controlled House of Representatives demanding spending cuts and policy changes from the Biden administration in exchange for raising the ceiling. The risks of allowing the government to default on its debt are too high. A default would lead to a financial crisis, causing economic upheaval both domestically and globally. It could damage the United States' reputation as a reliable borrower, increase the cost of future government borrowing, and undermining the dollar's status as the world's reserve currency