House Minority Leader Hakeem Jeffries (D-N.Y.) is considering eliminating the debt limit in 2024, rather than just raising it, Axios has learned. This move could give Democratic lawmakers leverage to push for concessions from President-elect Trump.
As the “X-date” approaches – potentially as early as mid-June – Republicans will likely block any attempts to raise the debt ceiling, leaving Democrats with an opportunity to use the issue to their advantage. The House Democrats have ruled out discussing the debt limit during government funding negotiations.
However, some Democrats like Rep. Don Beyer (D-Va.) and Sen. Elizabeth Warren (D-Mass.) support abolishing the debt ceiling, which Trump has also proposed as part of his government spending bill. A House Democrat familiar with the matter said that Rep. Brendan Boyle’s plan to eliminate the debt limit may be discussed in funding talks.
Boyle introduced a bill last year to allow the Treasury Department to pay down federal debt unless a veto-proof majority votes against it. He believes 2025 is the right time to end the “perennial debt ceiling dysfunction.”
Senate Democrats have also discussed eliminating the debt limit, with Warren raising the issue in private caucus meetings this week. As Warren takes over the Senate Banking Committee next year, she may shape the Democratic messaging on fiscal fights.
However, Trump faces challenges from his own party and pressure to back down if he pursues abolishing the debt ceiling. The proposal’s prospects are uncertain, and Republicans who oppose raising the debt ceiling will likely struggle with Trump’s plan to eliminate it entirely.
Source: https://www.axios.com/2024/12/20/hakeem-jeffries-trump-abolish-debt-ceiling