“Will We Still Have Money After 2025? Understanding the Debt Ceiling Suspension”
So, President Biden just signed a bill that stops the U.S. from running out of money to pay its bills, which is often called a "default". This is a big deal because if the U.S. couldn't pay its bills, it would cause a lot of problems, not just here, but all over the world. This new bill means the U.S. can keep borrowing money until January 1, 2025. You can read more about it on [Fox News](https://www.foxnews.com/politics/biden-signs-debt-ceiling-bill-avoiding-government-default).
The debt ceiling is like a credit card limit, but for the whole country. If we hit it, we can't borrow any more money. By suspending this limit, the U.S. avoids a default, which is like missing a credit card payment, but way bigger and way worse. You can find out more on [CNN](https://www.cnn.com/2023/06/03/politics/biden-signs-debt-ceiling-deal/index.html).
The "debt ceiling" is a limit set by the U.S. Congress on how much money the government can borrow to pay its bills. When the government reaches this limit, it can't borrow any more money, which could lead to a default - a situation where the government can't pay its debts. This could have serious consequences, not just for the U.S., but for the global economy.
So, what happens in 2025? Well, unless Congress decides to raise or suspend the debt ceiling again, the government will once again face the risk of hitting the debt ceiling. If that happens, and the government can't borrow more money, we could face the risk of a default.
However, it's important to note that Congress has raised or suspended the debt ceiling many times in the past to avoid a default. While these situations often involve a lot of political debate and can cause uncertainty, so far, they have always resulted in the debt ceiling being raised or suspended before a default occurs.