The United States is facing yet another standoff over its congressionally set debt limit. In addition to causing widespread economic harm, Congress's failure to raise the debt limit, also known as the debt ceiling, could directly impact government contractors. [4] If Congress fails to increase the debt limit, it puts all of these payments in jeopardy. [12]What Happens When the United States Hits Its Debt Limit? The consequences of the United States hitting its debt limit differ from the consequences of Congress's failure to pass its annual appropriations bill.

Source: ABC News May 19, 2023 15:17 UTC