President-elect Donald Trump on Thursday called for Congress to abolish the debt ceiling, labeling it a “psychological” barrier and an unnecessary risk to the economy.
Trump’s remarks came during a phone interview with NBC News, a day after he criticized a bipartisan short-term government funding deal.
“Getting rid of the debt ceiling would be the smartest thing Congress could do. I would support that entirely,” Trump said. “The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge.”
The debt ceiling, a statutory limit on how much the federal government can borrow to pay its existing obligations, has often been a point of contention in legislative negotiations. Critics warn that breaching the ceiling could cause severe economic consequences.
“It doesn’t mean anything, except psychologically,” Trump said, suggesting that no one knows the true impact of breaching the limit. “It could be a catastrophe, or it could be meaningless.”
Congress last raised the debt ceiling in June 2023, suspending it through January 2025. While typically a partisan flashpoint, the concept of eliminating the debt ceiling has gained traction among some Democrats.
Rep. Brendan Boyle, D-Pa., the ranking member of the House Budget Committee, has long advocated for the measure. Boyle’s Debt Ceiling Reform Act, co-sponsored by Sen. Dick Durbin, D-Ill., would give the president the authority to lift the debt ceiling unless Congress overrides the decision.
Boyle stated that “the only way” Democrats should agree to raise the debt ceiling under Trump is through its permanent elimination or significant reform. He left the door open to including such measures in ongoing government funding negotiations.
Sen. Elizabeth Warren, D-Mass., also voiced agreement with Trump’s proposal. “I agree with President-elect Trump that Congress should terminate the debt limit and never again govern by hostage taking,” Warren posted on social media.
The president-elect’s stance aligns with his history of questioning the debt ceiling during his first term, when he signed legislation three times to lift it. His renewed push for its abolition comes amid a legislative bottleneck that includes government funding, a potential debt ceiling increase, and plans for major party-line bills on immigration and taxes.
“If there’s going to be a shutdown, we’re going to start it with a Democratic president,” Trump said, referring to the possibility of a funding lapse.
Trump also revealed that he discussed the short-term funding deal with Elon Musk, aligning on concerns over cost. “I told him that if he agrees with me, he could put out a statement,” Trump said, describing their views as “very much on track.”
As Congress grapples with these contentious issues, the debate over the debt ceiling’s future could redefine fiscal policy in Trump’s second term.
