A joint resolution relating to increasing the debt limit.

Dec 16, 2021

Summary

Raises the total amount of money the United States government is allowed to borrow by $2.5 trillion.

What problem does this solve?

The U.S. government was close to reaching its borrowing limit, which could have caused it to not pay its bills. This resolution raises the borrowing limit, allowing the government to continue to pay for things it has already bought.

What does this law do?

Increases debt limit by $2.5 trillion

Raises the statutory limit on the total amount of debt the U.S. government can have by $2,500,000,000,000.

Who does this affect?

U.S. Federal Government
U.S. Taxpayers
Global Economy

What is the real world impact?

•

Prevents a government default

Raises the debt ceiling to ensure the U.S. government can continue to meet its existing financial obligations, such as Social Security, military salaries, and interest on the national debt.

•

Enables further government spending

By increasing the borrowing limit, this allows the government to continue spending at current levels without immediate cuts, which some may criticize as fiscally irresponsible.

When does this start?

This increase to the debt limit became effective on December 16, 2021.