President-elect Donald Trump criticized the 2023 debt ceiling extension, calling it “one of the dumbest political decisions made in years.” The deal, agreed upon by House Speaker Kevin McCarthy and President Joe Biden, suspended the debt ceiling until Jan. 1, 2025. The Treasury can pay bills beyond the deadline, but Congress will likely address the issue mid-year.
On Truth Social, Trump stated, “The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine … will go down as one of the dumbest political decisions made in years.” He urged Republicans to force Democrats to address the debt limit immediately, blaming the Biden administration for the looming fiscal crisis.
Without the 2023 increase, the U.S. faced potential default, risking market turmoil and a credit rating downgrade. Far-right Republicans had pushed for deeper spending cuts but settled for the negotiated deal.
Recently, Trump, supported by Elon Musk, proposed eliminating or extending the debt ceiling until 2029, aligning with the end of his potential presidency. This proposal, added to a short-term government funding extension, was rejected by House Democrats and hard-right Republicans. A funding bill without a debt-limit provision was ultimately passed.
With Republicans controlling Congress in January, they are expected to demand significant federal spending cuts in exchange for raising the borrowing limit. Democrats argue Trump’s push for debt ceiling changes is driven by plans for tax cuts that could increase national debt, which currently stands at $36.1 trillion.
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