After the contentious debate over the fiscal cliff, the next battle looming in Washington, D.C. is another fight between Republicans and the White House over whether to raise the nation's debt ceiling.

In 2011, House Republicans insisted on spending cuts before going along with raising the debt ceiling. However, President Obama has said he refuses to have the same debate again.

The debt limit is currently set at $16.4 trillion and the government is expected to surpass that figure on March 1. A new report from the Bipartisan Policy Center says that number may actually be surpassed as early as Feb. 15.

On Dec. 31, Treasury Secretary Timothy Geithner announced that the debt limit was actually already reached, but the Treasury took "extraordinary measures" to shuffle funds around in order to keep meeting its obligations.

Jenna Lee spoke with Fox Business Network's Charles Payne about the situation on Happening Now. He explained that if the debt limit is reached and Congress refuses to authorize another increase, the Treasury will be forced to balance its books, putting in jeopardy all kinds of payments such as tax returns, food stamps, veterans benefits and much more.

Watch the interview: