内容摘要：For Kenyans, the incident has unearthed the memory of other controversial churches steeped in allegations of abuse, like the 2023 case where more than 400 people linked to a church-cult starved to death in the

For Kenyans, the incident has unearthed the memory of other controversial churches steeped in allegations of abuse, like the 2023 case where more than 400 people linked to a church-cult starved to death in the

When the government spends more money than it collects, it creates a deficit.To cover this deficit, the government borrows more money. To ensure that borrowing is subject to legislative approval, the US Congress sets a limit to how much the government can borrow to fund existing obligations like Social Security, healthcare and defence. This limit is known as the debt ceiling.

Once the ceiling is reached, the government cannot borrow more unless Congress raises or suspends the limit. Since 1960, Congress has raised, suspended or changed the terms of the debt ceiling 78 times, allowing the US to borrow more money.The federal deficit under different presidentsThe federal deficit is how much more money the government spends than it brings in during a single year. A federal surplus would mean the US is bringing in more money than it is spending.

The deficit grew sharply during Trump’s first term, especially in 2020 during the COVID-19 pandemic, when the government spent heavily while tax revenues dropped due to job losses. That year, the deficit reached nearly 15 percent of the entire economy (GDP).Under former President Bill Clinton, there was a federal surplus – the result of favourable economic conditions such as the dot-com boom, as well as tax increases which raised more revenues.

What are Treasury bills, notes and bonds?

When the US wants to borrow money, it turns to the Treasury – the finance department of the federal government.But if the bill does pass and is signed by Trump, “it will apply to all colleges and universities” that meet the conditions set in the legislation, Saulnier said.

How have universities reacted?“This legislation presents a greater threat to Yale than any other bill in memory,” Yale President Maurie McInnis said in a statement released on May 22.

“The endowment tax places more financial burden on students by making college less affordable. Taxing schools reduces the revenue available for financial aid,” she wrote, adding that “the endowment tax will undermine the country’s global leadership in technology.”During a faculty meeting in 2024, Harvard President Alan M Garber called a raise in endowment taxes “the threat that keeps me up at night”.