Article / Updated 04-20-2023
The debt ceiling, legally known as the debt limit, is the total amount of money that the U.S. government is authorized to borrow to pay existing obligations, such as Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and disbursements for other programs.The debt limit applies to federal debt held by the public, namely, securities held by investors outside the federal government, and to federal debt held by the government’s own accounts.