Once every few years, we hear politicians and the media begin talk about the debt limit, also known as the debt ceiling. Amidst the chaos of what can seem like a regularly-scheduled financial crisis, it’s easy to lose track of what is actually being debated. Read on to learn what exactly the debt limit is, why approaching or breaching the limit could be risky, and how the 2023 debt limit negotiations fit in.

The constant evolution of the budget process, coupled with how much of the negotiations happen behind closed doors, can make following the process intimidating. But the outsized impact of these large legislative packages, along with the regularity with which Congress must engage in this process, makes following the budget essential. Understanding the key steps in this process will put you on the right path to being the budget expert in your organization.

For the past decade, Congress has been defined by small majorities and partisan gridlock. As barriers to policy making have taken hold, we have seen Congress become increasingly reliant on little-known tools and procedures that allow them to avoid the Senate’s 60-vote thresholds and legislate with smaller majorities.