President-elect Donald Trump has condemned the 2023 debt ceiling extension agreement reached between then-House Speaker Kevin McCarthy and President Joe Biden, calling it “one of the dumbest political decisions made in years.” His remarks, made on Sunday via a post on Truth Social, come as Republicans prepare to assume control of both chambers of Congress in January.
The 2023 budget deal, which suspended the U.S. debt ceiling until January 1, 2025, provided temporary relief from the threat of default. However, it leaves Congress facing a critical decision by mid-2025 when the Treasury’s ability to pay its obligations will again be in jeopardy.
Trump, referencing the decision, criticized McCarthy, a political ally, for agreeing to the extension and urged Republicans to force a vote on the debt ceiling during the Biden administration. “The Democrats must be forced to take a vote on this treacherous issue NOW, during the Biden Administration, and not in June,” Trump wrote. “They should be blamed for this potential disaster, not the Republicans!”
The debt ceiling agreement averted an unprecedented default that could have rattled global financial markets and raised borrowing costs for businesses and consumers. However, it has remained a contentious issue within the Republican Party, particularly among far-right lawmakers who had initially pushed for deeper federal spending cuts in exchange for the deal.
Trump’s criticism follows a recent Republican push to include a debt-limit extension in a government funding measure due to expire on December 20. Encouraged by billionaire Elon Musk, Trump suggested extending the debt limit to 2029, coinciding with the end of a potential second term in office. That proposal, however, was voted down by a coalition of House Democrats and hard-right Republicans.
Democrats have accused Trump of seeking the debt limit extension to enable new tax cuts that could further increase the national debt, which currently stands at $36.1 trillion. They argue that past spending levels and tax cuts have contributed significantly to the debt’s growth.
Looking ahead, Republicans are expected to demand significant federal spending cuts as a condition for raising the debt ceiling in the newly elected Congress. Such negotiations are likely to set the stage for fierce budget battles early in Trump’s presidency, potentially mirroring past clashes over the country’s borrowing limit.
As the January 1, 2025 deadline approaches, the stakes remain high for both parties. Failure to address the debt ceiling could trigger a default with wide-reaching economic consequences, adding urgency to the legislative process in the months ahead.
