The debt ceiling is the established limit on how much outstanding debt the United States government can owe. The government is allowed most types of borrowing under the condition that it stays below the debt ceiling.

Previously, Congress had to give the okay for each separate debt issuance that the federal government requested. However, during World War I, it became tiring for the federal government to constantly ask for approval. The debt ceiling emerged so that the government did not have to repeatedly seek permission and could manage its borrowing more freely.