President Biden said that the opposition Republican Party's proposal was "frankly unacceptable" Republicans said they were proposing to jeopardize food aid to nearly 100 million people while protecting the wealthy and others. Republicans are proposing stricter conditions for health insurance and food assistance for low-income people.
If the cap is not raised, US government bonds, which are traded around the world as reliable and safe assets, may default for the first time in history. The U.S. government's debt increased and reached its limit in January.