From The Vault
2011 Debt Ceiling Debate
As the government shutdown continues, the next fiscal crisis is already on the horizon. The Treasury says the U.S. will default on its loans on Oct. 17 unless Congress agrees to raise the debt ceiling, but House Republicans will not allow the debt ceiling to be raised without some concessions. During last fight to raise the debt ceiling in 2011, a deal was reached just 2 days before U.S. borrowing authority lapsed. The deal included significant cuts in spending, but the cantankerous debate resulted in the first-ever downgrade of the U.S. credit rating.