Credit rating agency warns of congressional debt limit stalemate despite GOP majority

Published On Jan 7, 2025, 6:07 PM

Fitch Ratings has issued a warning about a potential stalemate in Congress over the debt limit as the 2025 fiscal year approaches. Despite the expectation that Congress will handle the debt limit and other financial issues, significant policy challenges are anticipated. The report suggests that disagreements on spending could lead to delays in resolving the debt limit, which Congress must address by mid-2025 to avoid default. The Trump administration's plans to tie government funding to the debt limit have complicated matters, and ongoing unsettled dynamics in Congress may lead to last-minute negotiations, increasing the risk of a government shutdown.