President Donald Trump said Wednesday that the federal debt limit should be eliminated, adding another potential hurdle in the negotiations over Republicans’ reconciliation bill.
“The Debt Limit should be entirely scrapped to prevent an Economic catastrophe,” Trump said on his social media platform. “It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World.”
Trump noted that he was in agreement with Democratic Sen. Elizabeth Warren, who has also called for ending the federal debt limit. “[A]fter all of these years, I agree with Senator Elizabeth Warren on SOMETHING,” he wrote. “Let’s get together, Republican and Democrat, and DO THIS!”
The House GOP plan would raise the debt limit by $4 trillion, while the Senate is reportedly considering a $5 trillion increase. But the idea of raising the debt ceiling by such a large amount isn’t sitting well with some fiscal conservatives, including Sen. Ron Paul, the Kentucky Republican.
Saying the nation could run out of fiscal room to maneuver later this summer, Treasury Department Secretary Scott Bessent has urged Congress to raise or otherwise neutralize the debt limit by mid-July.