The debt ceiling, visualized: What happens if the U.S. hits the limit

Treasury Secretary Janet L. Yellen has warned Congress that the government may run out of money to pay all its bills as soon as June 1.

A law known as the debt ceiling sets the maximum amount the country can borrow. Because the government routinely spends more than it takes in from taxes and fees, Treasury has to borrow a lot — which means lawmakers periodically have to raise the debt ceiling.

If Congress fails to act, the government could run short of cash to make required payments of all kinds. That’s called default, and economists say it could have devastating effects on the United States and global economies.

In this comic, we show you what could happen.

Comic editing and production by Hannah Good. Editing by Mike Madden and Karly Domb Sadof. Design editing by Christine Ashack. Copy editing by Emily Morman.

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