President Donald Trump said on Wednesday that he wants lawmakers to pass a measure to abolish the U.S. debt limit, agreeing with a comment made by a longtime Democratic foe.
The debt limit, he said, “should be entirely scrapped to prevent an Economic catastrophe” because it has in the past been “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!” Trump added in his post on Truth Social, sharing a screenshot of Warren’s post on X.
She was making reference to a comment from Trump last week during an Oval Office news conference in which he noted that Warren has long been a proponent of removing the debt limit and “always agreed” with that proposal.
“She wanted to see it terminated, gotten rid of, not being voted on every five years or 10 years, and the reason was because it’s so catastrophic for our country,” Trump said in the news conference, held alongside former adviser and Tesla CEO Elon Musk.
“A failure to suspend or increase the debt limit would wreak havoc on our financial system and diminish America’s security and global leadership position,” Bessent wrote in a letter, dated May 9.
Bessent’s letter noted that he came to that conclusion after reviewing tax filings that were filed as of April 15, noting that there is still uncertainty around when exactly the United States will run out of money.
“The Congressional Budget Office estimates that if the debt limit remains unchanged, the government’s ability to borrow using extraordinary measures will probably be exhausted in August or September 2025,” the budget office said.
The debt ceiling was previously addressed in 2023 after Congress suspended it until Jan. 1, 2025, under the 2023 Fiscal Responsibility Act that was signed into law by former President Joe Biden.
Republicans who control both chambers of Congress are trying to advance a sweeping package that includes tax cuts and spending hikes in some areas and reductions in others. The House passed the measure last month, and it is now being considered by the Senate.
Over the years, lawmakers have repeatedly held negotiations over raising the government’s borrowing limit to the last minute, a trend that has rattled financial markets and led the major credit agencies to reassess the federal government’s creditworthiness.
