N※N

Explainer-What is a government shutdown and what is the debt ceiling?

A government shutdown occurs when Congress fails to pass or the President does not sign appropriations bills needed to fund government operations, leading to the closure of non-essential federal services. This happens because, under the Antideficiency Act, government agencies cannot spend more than what Congress has allocated. Essential services like national security and mail delivery continue, but many federal employees are furloughed or work without immediate pay. Conversely, the debt ceiling is the maximum amount of money the U.S. government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, and interest on the national debt. If the ceiling isn't raised, the government could default on its obligations, potentially causing economic turmoil. While a shutdown affects government operations directly, a failure to raise the debt ceiling could lead to broader economic consequences, including a potential downgrade of U.S. credit.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/explainer-what-is-a-government-shutdown-and-what-is-the-debt-ceiling/ar-AA1waFrX ]