President-elect Donald Trump called to abolish the federal debt limit framework on Thursday, saying it’s “the smartest thing” Congress could do and pledging to “support that entirely.”
In a phone conversation with NBC News, Trump dismissed the debt ceiling’s significance. “It doesn’t mean anything, except psychologically,” he said, questioning whether exceeding the limit would be “a catastrophe, or meaningless.”
The unexpected proposal complicates budget negotiations in Congress, where lawmakers face a Saturday deadline to avert a government shutdown. Several House Democrats, including Budget Committee ranking member Brendan Boyle, have already proposed similar reforms to the debt ceiling system.
Sponsored · Altamira Gold Corp.
Boyle said that “the only way” House Democrats should “vote to raise the debt ceiling under Trump is if we have a permanent elimination” of it.
The remarks followed Trump’s rejection of a bipartisan spending agreement Wednesday, which he discussed with (so-called shadow President-elect) billionaire and co-leader of the newly established Department of Government Efficiency (DOGE) Elon Musk before publicly opposing the deal.
“I told him that if he agrees with me, that he could put out a statement,” Trump said, adding that Musk was “looking at things from a cost standpoint.”
The current debt ceiling suspension, enacted in mid-2023, extends through early 2025. As president, Trump previously authorized multiple debt limit increases and suggested eliminating the system during his administration.
Massachusetts Senator Elizabeth Warren endorsed the proposal, writing on X that Congress should “terminate the debt limit and never again govern by hostage taking.”
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
