City Hall Tracking Debt Limit Proposal

The City is monitoring the debt ceiling agreement as Congress prepares to vote to keep the federal government operating.

“Pasadena has been tracking an agreement between the President and House Speaker Kevin McCarthy (R-CA) on a proposal to increase the federal debt limit through January 1, 2025,” Matthew Hawkesworth, the City’s finance director, told pasadena now.

“From an organizational perspective, the City of Pasadena is prepared to continue operations for the community without interruption despite potential payment delays from the Federal Government.”

The debt ceiling is the maximum amount of money that the federal government can borrow.

Increasing it allows the federal government to borrow funds to honor its obligations, including social security benefits, tax refunds and federal employees salaries.

Since 1960, Congress has raised the country’s debt ceiling more than 80 times.

Failing to raise the debt limit could lead to a default on the nation’s debt, and local residents and the City could experience a delay in receiving payments from the federal government.

President Joe Biden and GOP House Speaker Kevin McCarthy reached a deal on the debt ceiling. According to CNN, that deal would suspend the nation’s $31.4 trillion debt limit through January 1, 2025. The deal removes the debt ceiling it as a potential issue in the 2024 presidential election.