The federal debt ceiling has currently been suspended until August 1.
If this year so far is any indication, Senate Republicans will do everything possible to use a debt-ceiling showdown (and therefore the prospect of government shutdown) to squeeze concessions out of the Democrats or call for fiscal austerity.
Democrats are discussing using budget reconciliation to lower the threshold for raising the debt limit (or continuing the suspension of the debt ceiling) from 60 votes to a simple majority, since their chances of convincing 10 Republicans to cross the aisle are rather poor.
It's not so clear-cut though. The article linked at the beginning indicates it may be legally and politically difficult to adjust the debt ceiling through reconciliation:
Many experts argue that budget reconciliation allows for an increase -- though not another suspension -- of the limit. But some moderate Democratic members may be reluctant to vote for a debt ceiling increase that’s done without Republican votes, wary of getting attacked on the campaign trail in 2022 by GOP opponents as profligate deficit spenders.
The question: Does the Senate have a clear-cut legal path to adjust the debt ceiling and avoid a shutdown, or should America brace for another ugly budget fight and possible shutdown?