As of January 19, the United States reached its statutory debt limit of $31.381 trillion. In response, the Department of Treasury has undertaken “extraordinary measures” to pay off debt held by the federal government, which will last until June 5, 2023. A brief explanation of the debt limit can be found here. It is now up to the 118th Congress to address the debt limit for the United States to meet its financial obligations.
At this point, there are reports that House Republicans could vote for a suspension of the borrowing limit that will last until September 30, 2023. Speaker of the House Kevin McCarthy (R-CA) has pledged to cut spending for FY2024, with other members vocal about rescinding unspent COVID-19 relief dollars to cut spending without touching programs like Medicare or Social Security. The process to fund the government for fiscal year 2024 begins with the President’s Budget Request, which is projected to be released in March 2023.