Common confusion of people, even Americans. The debt ceiling and the federal budget are two different things. The Federal budget is already passed before the Dems went out of power in December, and the government is funded until 9/30/2023. The debt ceiling is a stupid thing, where the congress needs to authorize the government a limit on how much money it can borrow, to pay for the things they have already spent money on, similar to the credit limit on your credit card, which you if you reach, you can't use the card anymore.
Treasury is working on extraordinary measures to prolong the timeline of hitting the debt ceiling until about mid-June though. Hitting the debt ceiling WILL lead to the US Government to default on its debt for the first time in history, and a lot of institutions will book a massive loss all on the same day, that's why you see news articles spelling out a dooms day situation.
It will more than likely resolve itself in the next a couple of months though (could also be the famous last words lol).