Mar 31, 2025 - Politics & Policy
Scoop: White House considers leveraging debt ceiling
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The White House is eyeing this summer's debt ceiling's "X-date" as a forcing mechanism to push the "one big, beautiful bill" through Congress.
- "Gun to the head, the whole agenda, and the country's credit rating and global depression all rolled into one," says a White House official, describing their approach.
Why it matters: President Trump's partnership with House Speaker Mike Johnson (R-La.) partnership has led to some early wins. But there's a growing realization that the next steps are way more difficult.
- It's also an acknowledgement that the timeline for passing budget reconciliation through Congress is closer to the end of the summer, not the beginning.
- No one knows the precise date that the federal government will breach the $36.1 trillion debt limit, but the latest CBO estimates project the X-date will land in August or September.
- Two key White House officials — Kevin Hassett and James Braid — traveled to the Senate on Monday to meet with Finance Committee members to discuss the contours of the reconciliation package.
Zoom in: Since January, House leaders have wanted to include a debt ceiling hike in the reconciliation package.
- Senate GOP leaders embraced the same approach last week, with Senate Majority Whip John Barrasso (R-Wyo.) saying that Trump was also on board.
- Now the White House is going a step further. And their eyes are wide open to the massive risks if they fail, both to Trump's presidency and the global economy.
- "President Trump believes the debt extension should occur as soon as possible during reconciliation," a White House official tells Axios.
The bottom line: Lifting the debt ceiling is never an easy vote for Republicans.
- Johnson learned that lesson in December, when Elon Musk successfully killed legislation that would have suspended it.
- Back in 2023, 71 House Republicans voted against the last debt ceiling increase, which was negotiated by then-House Speaker Kevin McCarthy (and contributed to his ouster.)
- Back in 2019, 139 Republicans voted against raising the debt ceiling despite Trump being in the White House.
