A day after criticizing an agreement struck by congressional leaders to finance the government before a shutdown, President-elect Donald Trump stated on Thursday that Congress should remove the debt ceiling.
During a phone interview with NBC News, Trump stated that the best course of action for Congress would be to completely eliminate the debt ceiling. I would wholeheartedly endorse that.
Democrats have stated their want to eliminate it. “I would lead the charge if they want to get rid of it,” Trump continued.
Trump said that the debt ceiling is a pointless idea and that nobody knows for sure what would happen if it were ever violated. He said that it would be a disaster and that no one should want to know.
He claimed that it had no significance other than psychologically.
Legislators establish the debt ceiling, which sets the maximum amount that the federal government can borrow to cover its expenses. It doesn’t approve any additional expenditures.
He stated, “If there’s going to be a shutdown, we’re going to start it with a Democratic president suggesting that the fight playing out in Congress now is necessary to clear the decks before his administration begins in January.” The shutdown would take place at 12:01 a.m. on Saturday if a funding agreement isn’t reached.
Trump said, “We’ll see,” when asked if he still believes in House Speaker Mike Johnson, R-La. Regarding the speaker’s ongoing resolve, [the funding agreement] they reached yesterday was intolerable. It was unacceptable in many respects. It’s a trap for Democrats.
Trump said that before the X owner’s posts on Wednesday, he had spoken with Musk about his opinions on the short-term finance agreement.
I told him he could release a statement if he agreed with me, Trump said. He is considering the situation from a financial perspective. According to him, their opinions were in agreement and on course.
During his Wednesday call for Republicans to abandon the bipartisan short-term spending deal that was agreed, Trump also insisted that legislators raise the debt ceiling, which had not been discussed at all.
The debt ceiling was last raised by Congress in June 2023, and it was put on hold until January 1, 2025. Usually, the Treasury Department can purchase more time for Congress to address the deadline by extending it using so-called extraordinary measures.
The White House issued a statement prior to lawmakers passing the most recent increase, warning that a failure to lift it and default on the country’s debt would “likely cause severe damage to the U.S. economy.” The statement said that analyses by the Council of Economic Advisers and outside researchers showed that if the government defaults on its obligations, “the economy would quickly shift into reverse, with the depth of the losses a function of how long the breach lasted.”
During Trump s first term in office,he signed legislation three timestolift the ceilings. When he was in the White House, he also proposed doing away with the debt ceiling.
In recent years, some Democrats have expressed support for its repeal.
Rep. Brendan Boyle, D-Pa., the ranking member of the Budget Committee, has been leading the charge with legislation called theDebt Ceiling Reform Actthat would diminish Congress ability to use the threat of default as a tactic in legislative negotiations. Heintroduced it in 2023 with Sen. Dick Durbin, D-Ill., who unveiled a companion bill in the Senate.
The House bill has 55 co-sponsors, all Democrats, including former House Speaker Nancy Pelosi.
Boyle told NBC News that the only way House Democrats should vote to raise the debt ceiling under Trump is if we have a permanent elimination of it or a reform to largely nullify it, like his bill, which would give the president the power to lift the debt ceiling unless Congress overrides him.
He kept the door open to considering it as part of a government funding bill. As for including this in the CR, I d have to consider all of the other issues involved, Boyle said.
Sen. Elizabeth Warren, D-Mass., alsoposted on social mediaThursday morning that she agreed with Trump’s call to abolish the debt ceiling.
“I agree with President-elect Trump that Congress should terminate the debt limit and never again govern by hostage taking,” she wrote.
In addition to confirming his administration’s staff in the Senate, the president-elect seems to be aware of the legislative backlog that awaits him in the first year of his second term: plans to advance significant party-line legislation on immigration and taxes, a debt limit hike, and another round of government funding.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!