What happens if the US debt ceiling is not raised?

House Democrats have taken steps to deploy a secret weapon to avert a federal default if debt ceiling talks remain deadlocked. With the possibility of default projected as soon as June 1 and Republicans refusing to raise the debt ceiling without deep spending cuts, Democrats have begun the process of forcing a debt-limit increase bill to the floor using a discharge petition that could bypass Republican leaders. An emergency rule, introduced during a pro forma session held while the House is in recess, would start the process to allow signature collection from May 16 on such a petition, which requires the backing of over half of the chamber. The discharge petition would be added as an amendment to Democratic Representative Mark DeSaulnier's filed legislation, which has already been filed with various committees of jurisdiction. Failure to raise the debt ceiling would mean the US government cannot issue more securities, essentially stopping a key flow of money into the federal government and triggering economic chaos and a potential financial recession.

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