debt limit

American  

noun

1. (in public finance) the legal maximum debt permitted a municipal, state, or national government.

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Example Sentences

The $70 billion borrowing plan exceeds the city’s current debt limit, which is pegged to the total amount of taxpaying property in the city, by tens of billions of dollars.

From The Wall Street Journal

Treasury Secretary Scott Bessent has urged Congress to address the debt limit by mid-July and warned if they do not, the US could be unable to pay its bills as early as August.

From BBC

And, third, any policy passed through budget reconciliation must directly affect federal spending, revenue, or the debt limit.

From Salon

In the end, they actually defied him, passing a bill that was silent about the debt limit.

From Los Angeles Times

Also known as the debt limit, this is a law that restricts the total amount of money the government can borrow to pay its bills.

From BBC