Trump wants to kill the debt ceiling
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President-elect Trump told NBC News he supports abolishing the debt ceiling and is prepared to "lead the charge" to make it happen.
Why it matters: Republicans, including some of Trump's strongest supporters in Congress, have historically opposed raising the debt ceiling, at least when a Democrat is in office. Now Trump says he'll push them to scrap it entirely.
- That pronouncement comes a day after Trump came out against a spending deal, negotiated by Republican House Speaker Mike Johnson (R-La.), to keep the government running through March.
- His opposition effectively killed the bill and could lead to a government shutdown at midnight on Saturday.
Between the lines: Raising the debt ceiling and funding the government are two separate cliffs Congress repeatedly bumps up against, and Trump is now linking them together.
- The debt ceiling is a particularly sticky issue for Republicans, as many campaign against running up debts. Conservative members tend to push back on raising the ceiling, particularly when a Democrat is in the White House.
- Thus, Republicans would likely oppose abolishing the debt ceiling in principle — but few want to pick a public fight with Trump. The president-elect also floated the idea of scrapping the debt ceiling when he was last in office, but nothing came of it.
- Trump pointed out Thursday that some Democrats have already backed abolishing the ceiling. "If they want to get rid of it, I would lead the charge," he told NBC.
State of play: Congress suspended the debt ceiling through Jan. 1, 2025, meaning it will come back into force in just two weeks.
- However, the Treasury Department can use extraordinary measures to push back the date it will be breached, likely into the spring.
- The more urgent issue for leaders on the Hill is funding the government. Trump wants a "clean" continuing resolution — with many of the meticulously negotiated provisions pulled out, but some Republican priorities staying in.
- Democrats are already blaming him for the potential shutdown.
