The US Debt Ceiling: What In-house Counsel Need to Know

When the US national debt reaches the limit set by the US Congress, a question arises whether there is a risk that the United States might default on its obligations. With this curated selection of resources, learn about the implications in terms of disclosures for public companies, the impact on government contractors, and other issues.

1. Background

• The Potential Economic Impacts of Various Debt Ceiling Scenarios, a blogpost from the White House website (May 3, 2023)
• The Debt Ceiling: An Explainer, a blogpost from the White House website (October 6, 2021)

2. Implications for government contractors

• What Hitting the Debt Ceiling Might Mean for Federal Contractors, by Holland & Knight LLP (May 17, 2023)
• Debt Limit Default, by Crowell & Moring LLP (May 16, 2023)

3. Disclosures, capital markets, contracts, and other issues 

• Planning for the threat of a U.S. sovereign default, by Davis Polk & Wardwell LLP (January 17, 2023)
• Corporates Face Novel, Greater Risks From Debt Ceiling Impasse—Even if No Default Occurs, by Cleary Gottlieb Steen & Hamilton LLP (April 25, 2023)
• What Happens if Congress Fails to Raise or Suspend the Debt Ceiling: How Market Participants Can Prepare for a Worst Case Scenario, by Cleary Gottlieb Steen & Hamilton LLP (January 26, 2023)
• Considerations for a Possible Debt Ceiling Standoff, by Debevoise & Plimpton LLP (February 2, 2023)

Also explore takeaways for in-house counsel regarding the banking crisis after the collapse of Silicon Valley Bank:

•    How In-house Counsel Can Help Navigate a Banking Crisis, by Michael Greene (ACC Docket, May 4, 2023)
•    How GCs Can Team Up with CFOs to Lead a Business through Crisis, by Olga V. Mack (ACC Docket, March 31, 2023)