President-elect Donald Trump has thrown his weight behind the idea of abolishing the debt ceiling, just a day after denouncing a bipartisan deal to fund the government and avoid a looming shutdown.
Trump Labels Debt Ceiling ‘Meaningless’
In a phone interview with NBC News, Trump declared that eliminating the debt ceiling would be the “smartest thing” Congress could do, adding, “I would support that entirely.” He pointed out that Democrats have previously pushed for its removal and said, “If they want to get rid of it, I would lead the charge.”
Calling the debt ceiling a “psychological” tool with no substantive impact, Trump suggested that its potential breach could result in either “a catastrophe, or nothing at all,” adding, “No one should want to find out.”
The debt ceiling limits how much the federal government can borrow to meet its obligations and does not authorize new spending. Trump, however, dismissed its relevance, asserting it creates unnecessary political roadblocks.
Shutdown Looms as Trump Criticizes Funding Plan
As the federal government faces a potential shutdown at 12:01 a.m. Saturday, Trump maintained that any impasse should happen under the outgoing Democratic administration. “If there’s going to be a shutdown, we’re going to start it with a Democratic president,” he said, framing the current standoff as preparation for his administration’s January start.
Trump also took aim at House Speaker Mike Johnson’s short-term funding proposal, calling it “unacceptable” and a “Democrat trap.” When asked if he still had confidence in Johnson, Trump said, “We’ll see.”
Collaboration With Elon Musk
Trump revealed he had discussed the funding deal with Elon Musk before the billionaire publicly criticized the plan on his platform, X. “I told him that if he agrees with me, he could put out a statement,” Trump said, noting their views align on the issue. “He’s looking at things from a cost standpoint,” Trump added, describing Musk as “very much on track.”
Debt Ceiling Debate Returns
Though the debt ceiling was suspended through January 2025, Trump’s remarks have reignited the debate over its necessity. During his first term, Trump signed legislation three times to raise the ceiling and even floated eliminating it entirely.
Some Democrats, including Rep. Brendan Boyle, D-Pa., have been pushing for its removal, introducing the Debt Ceiling Reform Act to eliminate the threat of default as a bargaining tool. Boyle argued that Democrats should only consider raising the debt ceiling under Trump’s administration if it includes its permanent elimination or a reform giving the president authority to lift it.
Challenges Await in Trump’s Second Term
Trump’s call to eliminate the debt ceiling comes as he prepares to navigate a packed legislative agenda during his second term. This includes securing government funding, tackling immigration reform, implementing tax cuts, and advancing party-line initiatives—all while confirming key administration personnel in the Senate.
As Congress faces the immediate challenge of avoiding a shutdown, Trump’s stance has added fuel to the ongoing debate over how the government should handle its borrowing and spending limits, with both parties gearing up for a contentious fight.
