President-elect Donald Trump has voiced strong support for eliminating the federal debt ceiling, aligning himself with several Democratic lawmakers who have long called for its removal. In a phone interview with NBC News, Trump described the debt ceiling as an outdated and ineffective tool, labeling its elimination as “the smartest thing” Congress could do.
“The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge,” Trump stated. He argued that the debt ceiling serves no practical purpose beyond a psychological one and suggested that the consequences of surpassing it remain poorly understood. According to Trump, breaching the debt ceiling could result in either “a catastrophe or nothing at all.”
The debt ceiling, which caps the amount the federal government can borrow to meet existing financial obligations, does not authorize new spending. Congress last raised the limit in June 2023, suspending it until January 2025. Despite this temporary measure, the issue remains contentious as lawmakers grapple with funding the government to avoid a shutdown.
Trump sharply criticized a short-term funding deal proposed by Congress, calling it “unacceptable” and a “Democrat trap.” He emphasized the need for current legislative battles to “clear the decks” before his administration begins in January. When asked about House Speaker Mike Johnson’s role in the negotiations, Trump responded with a cautious “We’ll see,” signaling dissatisfaction with the bipartisan agreement.
The president-elect took to social media to attack Republicans who supported the now defunct continuing resolution that did not end the debt ceiling.
In an unexpected collaboration, Trump disclosed that he had discussed the ongoing funding stalemate with Elon Musk, the owner of X (formerly Twitter). He claimed their perspectives aligned, stating, “He’s looking at things from a cost standpoint.”
Trump’s position on the debt ceiling represents a significant shift from traditional Republican views, aligning instead with Democratic efforts to eliminate the borrowing limit. Rep. Brendan Boyle, a Democrat from Pennsylvania who introduced the Debt Ceiling Reform Act, has been a vocal advocate for reducing Congress’s ability to use the debt ceiling as a political weapon. The legislation would grant the president authority to raise the ceiling unless overridden by Congress.
Elizabeth Warren also expressed her agreement with Trump’s stance, writing, “I agree with President-elect Trump that Congress should terminate the debt limit and never again govern by hostage taking.”
