>Before 1917, the U.S. had no debt ceiling. Congress either authorized specific loans or allowed the Treasury to issue certain debt instruments and individual debt issues for specific purposes. Sometimes Congress gave the Treasury discretion over what type of debt instrument would be issued.[25] The United States first instituted a statutory debt limit with the Second Liberty Bond Act of 1917. This legislation set limits on the aggregate amount of debt that could be accumulated through individual categories of debt (such as bonds and bills). In 1939, Congress instituted the first limit on total accumulated debt over all kinds of instruments.[26][27]
>In 1953, the U.S. Treasury risked reaching the debt ceiling of $275 billion. Though President Eisenhower requested that Congress increase it on July 30, 1953, the Senate refused to act on it. As a result, the president asked federal agencies to reduce how much they spent, plus the Treasury Department used its cash balances with banks to stay under the debt ceiling. And, starting in November 1953, Treasury monetized close to $1 billion of gold left over in its vaults, which helped keep it from exceeding the $275 billion limit. During spring and summer 1954, the Senate and the executive branch negotiated on a debt ceiling increase, and a $6 billion one was passed on August 28, 1954.[28]
https://en.wikipedia.org/wiki/United_States_debt_ceiling#Leg...
Shutdowns happen when Congress hasn't appropriated new money by passing a budget. The shutdown failure mode is "there isn't enough money to pay for existing programs."