Trump Calls 2023 Debt Ceiling Extension ‘Dumb Political Decision’

WASHINGTON (Reuters) – U.S. President-elect Donald Trump criticized the 2023 debt ceiling extension, calling it “one of the dumbest political decisions made in years.”

Under the 2023 budget deal, Congress suspended the debt ceiling until January 1, 2025. Although the U.S. Treasury can manage payments beyond this date, Congress will need to tackle the issue midway through the year.

In a Truth Social post, Trump remarked on the previous Speaker of the House, Kevin McCarthy’s, decision saying, it will be remembered as a poor judgment. He called for Democrats to vote on the issue now, stating they should bear responsibility for any resulting crisis instead of Republicans.

Starting January 3, Republicans will hold control of both chambers of Congress, requiring some party members to agree to a debt limit agreement for it to pass into law. Without the 2023 debt increase, the U.S. could face a historic default, destabilizing financial markets and risking a credit downgrade that would raise borrowing costs.

Some far-right Republicans previously sought more extensive spending cuts as a condition for raising the debt ceiling. Recently, encouraged by billionaire Elon Musk, Trump called for eliminating or extending the debt limit until 2029. This proposal was attached to a government funding bill but was denied by a mix of House Democrats and hard-right Republicans.

Next month, Republicans are expected to demand deeper federal spending cuts when addressing the country’s borrowing limit. Democrats accused Trump of pushing for an immediate debt limit adjustment to allow new tax cuts that would further increase the debt.

As of now, the national debt is approximately $36.1 trillion, attributed to prolonged federal spending and past tax cuts.