Many Republicans insist that Democrats first need to agree to cut spending by the same amount, while some in the GOP say they're against any increase.
While the arguing goes on, the People's Paper is here to break down how it will affect you.
Q: Bottom line, what will it mean for me if the issue isn't resolved by Tuesday's deadline?
A: If you're a government employee, you might not get paid. If you're a vacationer planning a trip to a national park, you might have to change your plans. No one's exactly sure where the government will cut back if it has to.
"It'll have a negative effect on the economy at a time when we don't need that," said Bob Bixby, executive director of the Concord Coalition, a nonpartisan group that advocates fiscal responsibility and supports raising the debt limit.
He said those effects will be gradual, leading us on a slow side back into recession. An even larger issue is what comes next as we keep raising the debt ceiling to keep up with our spending, said Kent Smetters, a professor at the University of Pennsylvania's Wharton School of Business.
Q: The debt ceiling has been raised more than 100 times since 1917, why the big deal now?
A: It's a sign of our highly partisan times, and the influx of tea-party Republicans who have made fiscal issues a top priority.
The issue has traditionally been used by whichever party is in the minority to blame the majority party for the debt. "It's a negotiation chip to control the future growth rate, it's not about the current situation," Smetters said.
Q: What's the difference between the Democratic and Republican plans to reduce the deficit?
A: Both plans include major spending cuts that would reduce the budget deficit by more than $2 trillion over 10 years.
