President-Elect Donald Trump Supports Abolishing Debt Ceiling, Calls it “The Smartest Thing”
President-elect Donald Trump has come out in support of abolishing the debt ceiling, calling it “the smartest thing” that Congress could do. This move comes just a day after scuttling a bipartisan spending deal that would have averted a federal government shutdown in two days.
Trump informed Republican lawmakers of his opposition to the 1,500-page bill put together by House Speaker Mike Johnson, which was criticized by billionaire Elon Musk, who has been named to run a government efficiency panel, as being full of Democratic giveaways. Trump instead pushed for a “clear” spending bill that increases the debt ceiling.
When asked about the possibility of a government shutdown if a deal isn’t reached by 12:01 a.m. Saturday, Trump said “if there’s going to be a shutdown, we’re going to start it with a Democratic president.” He also urged the debate on the debt ceiling to occur during the Biden administration, echoing a statement he and Vice President-elect JD Vance issued on Wednesday.
The debt ceiling sets a limit on how much money the U.S. government can borrow to meet its existing legal obligations, and is currently set at $31.46 trillion. Trump also noted that the concept of the debt ceiling “doesn’t mean anything, except psychologically.” Despite this, he said he would support getting rid of it, saying “the Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge.”
The debt ceiling was suspended in 2023 until January 1, 2025. The Trump administration suspended it three times.