Donald Trump has called for eliminating the federal debt ceiling entirely, upending Republican negotiations over a sweeping budget package that would raise the borrowing cap and advance key elements of the United States President’s economic agenda.
Posting on Truth Social on Wednesday, Trump wrote, “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.”
He urged lawmakers from both parties to “get together” and “DO THIS”.
The comment came just hours before Trump was due to meet Senate Republicans to discuss the tax provisions of his so-called “big, beautiful bill” - a wide-ranging legislative package that includes fresh tax cuts and spending priorities.
A provision to increase, but not abolish, the debt ceiling is currently included in the bill passed by the House.
Trump’s unexpected call to scrap the borrowing cap altogether added a new wrinkle to the debate as he framed his position as an endorsement of Senator Elizabeth Warren (D-Mass.), a longtime political foe who has also advocated for eliminating the debt limit.
The moment marked a rare agreement between the two, breaking from years of acrimony.
The “big, beautiful bill” legislation, which cleared the House last month, is projected to significantly widen the federal deficit. The Congressional Budget Office (CBO) estimated on Wednesday that Trump’s plan would increase deficits by US$2.4 trillion over the next decade.
The bill would cut federal spending by $1.3 trillion but also reduce revenues by $3.7 trillion, primarily due to the proposed tax cuts.
The package is facing growing resistance in the Senate, particularly from fiscal conservatives. Senator Ron Johnson (R-Wis.) said on CNBC’s Squawk Box that he would oppose the bill in its current form, labelling it “grotesque” and “immoral.”
Senator Rand Paul (R-Ky.), another vocal critic, has called for the debt limit to be addressed separately and was publicly rebuked by Trump earlier this week for his opposition.
Adding further pressure, Elon Musk, former head of Trump’s now-defunct Department of Government Efficiency (DOGE), condemned the legislation as a “disgusting abomination”, urging his 220 million social media followers to contact lawmakers and “KILL the BILL”.
