President Donald Trump has called for the entire scrapping of “Debt Limit” to ensure the economy does not plunge into “catastrophe”.
The US President said, “the Debt Limit should be entirely scrapped to prevent an Economic catastrophe.”
The statement is coming as Republicans scramble to pass a sweeping legislative package that would raise, rather than eliminate, the cap on the federal government’s borrowing authority.
On Wednesday, President Donald Trump said the debt limit should be “entirely scrapped,” throwing another wrench into negotiations around the GOP’s “big beautiful” bill.
The statement by the 47th President of the United States (US) on Truth Social is coming as Republicans struggle to pass Trump’s new round of tax cuts and other policy priorities in a sweeping legislative package that would elevate, rather than eliminate, the cap on the federal government’s borrowing authority.
Republicans are facing a potential August deadline to raise the debt limit before the U.S. starts defaulting on its financial obligations.
Trump posted the comment ahead of a meeting with high-ranking Senate Republicans Wednesday afternoon on the tax portion of the megabill.
Adding to the unexpected tension: He tagged it as an endorsement of Sen. Elizabeth Warren (D-Mass.) who has also called for eliminating the debt limit.
President Trump wrote on Truth Social: “I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe. 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. As to Senator Warren’s second statement on the $4 Trillion Dollars, I like that also, but it would have to be done over a period of time, as short as possible. Let’s get together, Republican and Democrat, and DO THIS!”
This is not the first time Trump has made a suggestion of doing away with the federal borrowing limit.
The president made known the idea in a December interview with NBC News, not long before lawmakers were set to vote on a bill to avert a government shutdown that Trump had demanded should include a debt limit increase.
Scott Bessent, Treasury Secretary, issued a warning last month that the Treasury Department would likely run out of funds to pay the country’s bills by August, announcing an unofficial deadline for lawmakers to approve legislation bumping the debt ceiling.
The post also marked an unusual combination of opinion between Trump and Warren, with whom the president has repeatedly contended with.
Trump’s post encompassed a screenshot of an original post by Warren making similar requests to remove the debt limit, and noted that “I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING.”
