Credit: (AP Photo/J. Scott Applewhite)

The U.S. is in danger of defaulting on its debt and other financial obligations if Congress and President Joe Biden can’t quickly come to an agreement on lifting the debt ceiling or limit on federal debt.

Treasury Secretary Janet Yellen told Congress on Friday that the U.S. will run out of money to pay its bills by June 5 if lawmakers do not act to raise the federal debt limit. That’s four days later than Yellen had previously indicated the U.S. could default.

A prolonged impasse could roil financial markets, increase unemployment and upset ongoing work on New Jersey’s next annual budget. 

But what exactly is the debt ceiling? Why is there a delay? How does this affect New Jersey?  

Here are some answers: 

— Editor’s note: This item was updated to include the new June 5 deadline announced by Treasury Secretary Janet Yellen on Friday.

— Infogram by Genesis Obando and Madeline Ference.