Trump Supports Congress Scrapping Debt Ceiling, Labels It ‘Meaningless’
TL/DR –
Donald Trump has urged Congress to abolish the debt ceiling, a day after speaking against a funding deal agreed upon by lawmakers to prevent a government shutdown. Trump believes the debt ceiling is psychologically significant but fundamentally meaningless, noting that no one knows the precise impact of breaching it. The president-elect suggested that if a government shutdown were to occur, it would begin under a Democratic president, indicating he views the current congressional fight as necessary preparation for his upcoming term.
President-elect Trump urges Congress to eliminate the debt ceiling, a day after criticizing a congressional deal to avoid a government shutdown. Trump stated in an NBC News interview it would be the “smartest” move for Congress.
The debt ceiling, which doesn’t authorize new spending, sets a limit on federal borrowing to pay bills. Trump labeled it a meaningless concept, adding “it doesn’t mean anything, except psychologically”.
Trump advocates for a shutdown if the fight over current negotiations will clear the stage for his upcoming administration. Regarding his views on House Speaker Mike Johnson, Trump stated: “We’ll see. The funding deal they negotiated was unacceptable,” labeling it’s a “Democrat trap”.
Trump disclosed he discussed his thoughts on the funding deal with Elon Musk. He informed Musk could issue a statement if he agreed with his stance.
Trump called on Republicans to dismiss the bipartisan short-term spending bill, while also demanding a rise in the debt ceiling — previously not on the table. Congress last raised the ceiling in June 2023, suspending it until January 1, 2025.
Before the last increase, the White House highlighted the dire consequences of defaulting on the nation’s debt through a statement, asserting a default would \”likely cause severe damage to the U.S. economy.\”
During his first term, Trump thrice signed legislation to lift the ceiling. He also proposed eliminating the ceiling while in office. Several Democrats, including Rep. Brendan Boyle and Sen. Elizabeth Warren, have also expressed support for its elimination.
Boyle is leading efforts with the Debt Ceiling Reform Act, designed to reduce Congress’ ability to use default threats as a negotiation tactic. Boyle suggests House Democrats should only raise the debt ceiling under Trump’s administration if it’s permanently eliminated.
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