Trump’s push to eliminate the debt ceiling in the recent CR seems motivated by a combination of things:


President-elect Donald Trump’s push for the elimination or suspension of the debt ceiling in the recent Continuing Resolution (CR) appears to be driven by several strategic and political considerations:

  1. Avoidance of Early Term Conflict: Trump wanted to avoid a potential political and economic showdown over the debt ceiling early in his administration. By addressing the debt ceiling under President Biden’s tenure, Trump would not have to manage a crisis that could disrupt his agenda, particularly his plans for implementing tax cuts and other fiscal policies. This move would shift the responsibility of dealing with the debt ceiling to the current administration, thereby avoiding what could be politically damaging negotiations during his initial months in office.
  2. Support for Tax Cuts and Increased Spending: Trump’s advocacy for abolishing the debt ceiling aligns with his policy goals of extending and possibly expanding tax cuts, like those proposed for tips and social security, which would increase the federal deficit. Without a debt ceiling, he could implement these fiscal policies without the immediate need to raise the borrowing limit, thus avoiding the political bargaining that typically accompanies such actions. This perspective is echoed across various discussions on X, where it’s noted that Trump might want to bypass congressional constraints on spending.
  3. Political Maneuvering: Trump’s sudden interest in eliminating the debt ceiling could also be seen as a tactical move to put pressure on Democrats, who have previously supported such an idea, into a position where they would have to either agree or be seen as obstructing fiscal policy. This could potentially weaken their leverage in future budget negotiations. However, this strategy was met with resistance, as many Democrats and fiscally conservative Republicans were not in favor of such a move without corresponding spending reforms.
  4. Psychological Impact: Trump has suggested that the debt ceiling is more of a “psychological” barrier rather than a substantive one, implying that its removal would not have significant practical implications but would remove a recurring point of political contention. His comments to NBC News indicate that he views the debt ceiling as something that “doesn’t mean anything, except psychologically.”