Lawmakers on each side of the aisle appeared caught off guard on Wednesday as President-elect Trump demanded {that a} debt ceiling hike be paired with a stopgap authorities funding invoice, rejecting a sweeping bipartisan plan to avert a authorities shutdown this week.
Trump mentioned in a joint assertion with Vice President-elect J.D. Vance mentioned that whereas the celebration needs catastrophe support and help for farmers — points which can be tackled within the short-term funding plan — he needs Congress to cross a “streamlined spending bill” that doesn’t give Democrats “everything they want” and has “an increase in the debt ceiling.”
“The most foolish and inept thing ever done by Congressional Republicans was allowing our country to hit the debt ceiling in 2025. It was a mistake and is now something that must be addressed,” the assertion learn.
Sen. Susan Collins (R-Maine), the highest Republican on the Senate Appropriations Committee, mentioned she was “surprised” by the demand.
“This has come as a surprise to me,” she informed reporters on the Capitol. “I used to be stunned that [Trump] needs to maneuver the debt restrict vote as much as this 12 months.
“I don’t know his rationale,” she added.
Sen. Thom Tillis (R-N.C.) mentioned he has “no problem with doing it,” however added, “I just don’t know why Sen. Schumer would accept it.”
“It looks like June [for the debt ceiling], and so you don’t have the pressure of an impending default to get people [to raise it],” he mentioned.
Rep. Dave Schweikert (R-Ariz.) informed reporters on Wednesday that he doesn’t assume the debt restrict must be half of the present funding dialogue.
“Stressors are almost the only moments we do difficult things. Stressors are how we built sequestration, how we did do many of these things,” he mentioned, whereas additionally telling reporters on the matter, “without the stressor, how do you convince markets that you’re taking some of the debt seriously?”
“If you just walk away and say. We’re just raising the debt ceiling, in some ways, you pay a penalty by higher interest rates into the future,” he mentioned. “There’s no more free options anymore.”
And in a publish on X, Sen. Chris Murphy (D-Conn.) accused Trump of wanting Democrats “to agree to raise the debt ceiling so he can pass his massive corporate and billionaire tax cut without a problem.”
“Shorter version: tax cut for billionaires or the government shuts down for Christmas,” he added.
The debt ceiling places a restrict on how a lot cash the Treasury can owe to cowl the nation’s payments. The nationwide debt at the moment stands at greater than $36 trillion.
Below a earlier bipartisan plan handed by Congress to deal with the debt restrict final 12 months, each side agreed to droop the debt ceiling by means of 2024, kicking the duty of additional motion on the cap to whichever candidate received the presidential election.
Whereas the debt restrict is simply suspended by means of the top of the 12 months, the Treasury Division has beforehand been capable of take what it refers to as “extraordinary measures” to stop the nation from defaulting on its debt to purchase time for Washington to strike a deal on how you can deal with the debt ceiling.
A latest estimate by the Financial Coverage Innovation Middle (EPIC) has gotten some consideration earlier this week that the so-called “X-Date” when such measures may exhaust subsequent 12 months might be “as early as June 2025 and before the August 2025 recess at the latest.”
Some Republicans on Wednesday signaled openness to the concept of together with a debt ceiling improve within the invoice.
“I don’t like dealing with the debt ceiling, but I don’t want it to be used as a tool against President Trump,” Sen. Ted Budd (R-N.C.) additionally mentioned on Wednesday.
It’s not but clear how Democrats will reply to Trump’s proposal, although the celebration out of energy — which Democrats could be in 2025 — usually calls for main concessions in return for agreeing to lift the debt restrict.
Final 12 months, Democrats insisted for months on a “clean” debt restrict improve with out add-ons and charged Republicans with enjoying with the specter of a nationwide default. The messy showdown ultimately resulted in a debt restrict suspension together with a deal for caps on annual federal spending – however not and not using a credit score downgrade from one of many “Big Three” credit standing businesses.
Some Democrats are holding off on taking a stance, for now.
“I don’t believe in negotiating with yourself. I mean, we’re now with the ball in the House’s court,” Senate Finance Chair Ron Wyden (R-Ore.) mentioned, earlier than expressing help for the bipartisan funding plan struck this week to stop a authorities shutdown forward of the hanging Friday deadline.
Congress got here to a halt on Wednesday afternoon as Trump got here out in opposition to the plan, simply as lawmakers ready to behave on the sweeping bundle to maintain the federal government open by means of mid-March, together with a bunch of add-ons starting from catastrophe support following hurricanes Helene and Milton, financial help for farmers, and healthcare provisions.
“I feel very strongly about the health package,” Wyden as a substitute mentioned. “I spent hours and hours, months and months … The president-elect has talked about being fiscally responsible. Our package gets money in the coffers of Medicare and taxpayers and seniors, and sure fits his bill.”
Al Weaver contributed.
