Article Summary –
Donald Trump, who previously advocated for using the federal debt ceiling as leverage under Democratic leadership, is now urging Congress to eliminate the borrowing cap as he prepares to return to the White House. The U.S. national debt has exceeded $36 trillion, with Trump’s first term contributing about $8 trillion; despite this, Trump is promoting tax cuts and tariffs that the Committee for a Responsible Federal Budget estimates could add between $1.65 trillion and $15.55 trillion more to the debt. While Trump supports removing the debt ceiling, not all congressional Republicans agree with him, as demonstrated by Senator Ron Johnson’s stance against eliminating the cap, emphasizing the need for controlling government spending through a debt ceiling limit.
Under Democratic presidents, Donald Trump often urged Republicans to leverage the federal debt ceiling for political demands. Now, eyeing a return to the White House, Trump is advocating for the removal of the government borrowing cap.
The U.S. government has amassed over $36 trillion in debt, with about $8 trillion accrued during Trump’s initial term. To manage interest payments and current expenses, the Treasury must accrue more debt annually. Instead of increasing tax revenues or reducing spending to curb the budget deficit, Congress enforces a borrowing limit.
The Treasury Department clarifies that the debt limit does not sanction new expenditures; it enables the financing of existing obligations agreed upon by past Congresses and presidents.
Republicans have frequently wielded the limit as a negotiation tool, threatening defaults unless Democrats concede to demands like subsidy cuts. Such standoffs spark market instability, elevate borrowing costs, and have led to credit downgrades by Standard & Poor’s and Fitch.
In a December 19, 2024, interview with NBC News, Trump advocated for Congress to abolish the debt limit, asserting it as “the smartest move,” and expressed his readiness to lead such efforts.
The Trump team did not comment immediately. In December 2021, Congress fixed the debt ceiling at $31.381 trillion. A bipartisan measure in June 2023 suspended this limit until January 2025. As this suspension nears expiration, Trump failed to attach a debt ceiling increase to a spending bill before Biden’s departure. He urged immediate action by Democrats, blaming potential fallout on them.
Historically, Trump has encouraged Republicans to exploit debt limit standoffs. In 2013, he tweeted about GOP leverage, and in 2023, he wrote on Truth Social about reclaiming concessions through tough negotiations.
Though Trump’s 2016 campaign pledged to balance the budget, he did not achieve this. The Committee for a Responsible Federal Budget estimates his proposed tax cuts and tariffs for the 2024 campaign could add $1.65 trillion to $15.55 trillion to the debt over a decade.
Not all Republicans support Trump’s latest debt strategy. Newsweek reported that Sen. Ron Johnson opposes eliminating the limit, advocating for a controlled increase and responsible spending.
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