Latest news with #DebtLimit
Miami Herald
5 days ago
- Business
- Miami Herald
Trump says he and Elizabeth Warren finally agree ‘on SOMETHING.' What to know
President Donald Trump and Sen. Elizabeth Warren have long had a rocky relationship characterized by deep policy disagreements and insult hurling. Trump has called the Massachusetts Democrat a 'basket case' and frequently referred to her as 'Pocahontas.' In turn, Warren has described Trump as a 'thin-skinned fraud' and a 'wannabe tyrant.' But now, the two political leaders have found common ground. At least on one issue. '@realDonaldTrump and I agree: the debt limit should be scrapped to prevent an economic catastrophe,' Warren wrote on X on May 30, linking to a video of Trump calling to abolish the debt limit. 'Let's pass a bipartisan bill and get rid of it forever.' Days later, the president reiterated that he was on board with the idea. 'I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING,' he wrote on Truth Social on June 4. 'The Debt Limit should be entirely scrapped to prevent an Economic catastrophe…Let's get together, Republican and Democrat, and DO THIS!' Warren, currently serving her third term, then issued another statement on the subject, this time calling out her GOP colleagues. 'If Republicans in Congress were serious about preventing that economic disaster, they would scrap the debt limit entirely like President Trump has called for – not increase it by $4 trillion dollars to finance tax cuts for billionaires and billionaire corporations.' More on the debt ceiling The debt limit — also referred to as the debt ceiling — is the maximum amount of money the U.S. government is legally authorized to borrow in order to meet its existing financial obligations. These obligations include paying for programs and services such as Social Security, military salaries, Medicare and interest on the national debt. The GOP spending bill — which passed in the House and is under consideration in the Senate — would increase the national debt by $2.4 trillion over the next decade, according to an analysis by the Congressional Budget Office. Ending the debt ceiling comes with both pros and cons, experts and lawmakers say. Abolishing the debt limit would end the threat of the U.S. defaulting on its obligations, which could trigger a recession, according to Congressional Digest. 'Default would threaten the status of U.S. government debt as the safest asset in the world,' according to a 2022 report from the House Committee on the Budget. 'The U.S. currently enjoys status as the global reserve currency, but the inability to pay our debts on time – especially in the conditions of a long debt limit stalemate – could threaten this standing and provide an opportunity for a global competitor, such as China, to step in…' But, proponents of maintaining the debt ceiling say axing it would remove a necessary check on government spending, according to The Week. Former President Joe Biden was one such proponent. In 2022, he dismissed a Democratic push to end the debt ceiling as 'irresponsible.'
Time of India
5 days ago
- Business
- Time of India
Can the U.S debt ceiling be scrapped as suggested by Donald Trump? Here's what the law says
A Surprising Agreement: Trump and Warren Want the Same Thing The US Is Running Out of Time What Is the Debt Ceiling? Live Events Is the Debt Ceiling Even Constitutional? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel US president Donald Trump and Democratic Senator Elizabeth Warren are both calling for the elimination of the US debt ceiling , while both of them are known for their sharp differences, they now share a common stance on one of the country's most controversial fiscal policies, as per a wrote on his social media site Truth Social on Wednesday, saying, 'I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe. It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World. As to Senator Warren's second statement on the $4 Trillion Dollars, I like that also, but it would have to be done over a period of time, as short as possible. Let's get together, Republican and Democrat, and DO THIS!'While, the House has passed Trump's "big, beautiful bill," now the president is pushing for the Senate to pass the bill, including plans to raise the nation's debt ceiling by $4 trillion, reported The Hill. Treasury Secretary Scott Bessent has alerted that Congress needs to lift the debt ceiling by mid-July to prevent a default, as per the report. The Treasury has also pointed out that it could have to resort to "extraordinary measures" to prevent the government from defaulting on its $30 trillion debt, according to The Hill debt ceiling, which is also called the debt limit, "is the maximum amount of money that the United States can borrow cumulatively to meet its existing legal obligations," as defined by there has been controversy about whether the debt ceiling is constitutional because as per the 14th Amendment of the US Constitution, 'The validity of the public debt of the United States, authorized by not be questioned," as quoted by Investopedia in its the debt ceiling, which was created in 1917 is a legislative cap that has to be raised by a majority vote in both the Senate and the House of Representatives, which just raises the limit on the amount of money the government can borrow to pay back commitments already agreed upon by Congress, reported USA both believe the debt ceiling creates unnecessary economic risk and should be eliminated to prevent political gridlock from leading to a national current debt ceiling suspension is ending, and the government could hit the limit by August unless Congress acts.
Yahoo
5 days ago
- Business
- Yahoo
Donald Trump and Elizabeth Warren Find Themselves in Surprise Agreement
As the age-old adage goes: keep your friends close, but your enemies closer. In a change of pace on Wednesday, President Donald Trump found himself agreeing with one of his biggest Democratic adversaries, Sen. Elizabeth Warren, taking to Truth Social to rally for some bipartisan unity regarding his 'Big, Beautiful Bill.' 'I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING,' Trump wrote. 'The Debt Limit should be entirely scrapped to prevent an Economic catastrophe. It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World.' 'As to Senator Warren's second statement on the $4 Trillion Dollars, I like that also, but it would have to be done over a period of time, as short as possible. Let's get together, Republican and Democrat, and DO THIS!' he concluded. Trump was referring to an X post Warren made on May 30, where she echoed that she and the president were in agreement about scrapping the debt limit. '@realDonaldTrump and I agree: the debt limit should be scrapped to prevent an economic catastrophe,' Warren posted at the time. 'Let's pass a bipartisan bill and get rid of it forever. But jacking up the debt limit by $4 trillion to fund more tax breaks for billionaires is an outrage.' The comments came after a warning from Treasury Secretary Scott Bessent last month that the U.S. will reach its debt limit cap by August. Lawmakers must face a vote to raise the limit or face the consequences of being unable to pay the bills. Trump's bill, which passed the House, included a $4 trillion debt ceiling hike, though that figure could change as it moves through the Senate. Trump is currently vying for the Senate to pass the over-1,000-page bill detailing plans for tax cuts and spending cuts among other measures, including immigration. The president has dubbed it 'One, Big, Beautiful Bill.' The bill has notably drawn concern and criticism over its potential ability to spike deficits, notably $2.4 trillion in national debt over the next decade. Opponents of the bill, including Democrats, say it simply provides tax breaks to the rich while leaving low-income Americans at a loss. A number of Republicans, including Sen. Rand Paul and Elon Musk, have spoken out against the bill. Warren released a statement of her own in response to Trump's Truth Social post. 'The independent non-partisan Congressional Budget Office confirmed today that Donald Trump's Big Beautiful Bill will rip away health care from millions of people and increase the debt by $2.4 trillion to fund tax breaks for the ultra-wealthy. That's a disgusting abomination, as Elon Musk made clear,' Warren wrote, referencing Trump's former buddy's sudden U-turn on the bill this week. 'I've argued for years that a default on the national debt would be an economic catastrophe that must be avoided by getting rid of the debt limit permanently,' wrote Warren. 'If Republicans in Congress were serious about preventing that economic disaster, they would scrap the debt limit entirely like President Trump has called for—not increase it by $4 trillion to finance tax cuts for billionaires and billionaire corporations.' Warren and Trump have long clashed, with Warren being a vocal critic of the president's administration and his policies. 'Donald and Elon are bullies,' Warren told a crowd in March. 'They think calling people names or waving a chainsaw makes them look manly.' Trump referred to the Massachusetts Democrat as 'Pocahontas' for years in mockery after Warren stated Native American ancestry. He brought it back in March during his first joint address to Congress.
Yahoo
6 days ago
- Business
- Yahoo
Trump calls for scrapping debt limit
President Trump doubled down Wednesday on calls to scrap the nation's debt ceiling, pressing for bipartisan action to abolish it and finding common ground with Democratic Sen. Elizabeth Warren (Mass.). 'I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe. It is too devastating to be put in the hands of political people that may want to use it despite the horrendous effect it could have on our Country and, indirectly, even the World. As to Senator Warren's second statement on the $4 Trillion Dollars, I like that also, but it would have to be done over a period of time, as short as possible. Let's get together, Republican and Democrat, and DO THIS!' Trump wrote on Truth Social. He shared Warren's post on the social platform X from Friday, when she agreed with Trump that the debt limit 'should be scrapped' and called for a bipartisan bill to 'get rid of it forever.' Warren had posted Trump's comments in which he noted the progressive senator has long supported abolishing the debt limit in the past. He said he 'always agreed with her' on the matter, adding that he hasn't spoken to her personally about it. 'She wanted to see it terminated, gotten rid of, not being voted on every five years or 10 years, and the reason was because it's so catastrophic for our country,' Trump said at a Friday press conference, alongside Tesla CEO Elon Musk. Treasury Department Secretary Scott Bessent has urged Congress to raise the nation's debt ceiling by mid-July to prevent a default, after former President Biden and GOP leadership suspended the limit in 2023 to push off the threat of a national default through early 2025. The Treasury Department has also warned the government would have to implement 'extraordinary measures' to keep the nation from defaulting on its more than $30 trillion debt. Trump and Warren have clashed throughout the years, and the president has mocked her with the nickname 'Pocahontas' in various speeches. At this first joint address to Congress in March, Trump called the progressive senator the nickname, and she responded by clapping from her seat. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CBS News
6 days ago
- Business
- CBS News
President Trump and Sen. Elizabeth Warren say they finally agree on one issue
President Donald Trump and Sen. Elizabeth Warren of Massachusetts have been slinging insults at each other for nearly a decade and generally find themselves on the opposite side of every political issue. But there's one thing they both say they agree on: Eliminating the debt ceiling. "@realDonaldTrump and I agree: the debt limit should be scrapped to prevent an economic catastrophe," Warren wrote in a social media post on May 30. "Let's pass a bipartisan bill and get rid of it forever.". Mr. Trump said on Wednesday that he agrees. "I am very pleased to announce that, after all of these years, I agree with Senator Elizabeth Warren on SOMETHING. The Debt Limit should be entirely scrapped to prevent an Economic catastrophe," the president posted on his social media platform Truth Social. "Let's get together, Republican and Democrat, and DO THIS!" What is the debt ceiling? The Trump budget bill that passed the House would raise the debt ceiling by $4 trillion. Warren added it would be an "outrage" to raise the debt limit by that much "to fund more tax breaks for billionaires." The debt ceiling represents the maximum amount of money that the Treasury can borrow to pay off the federal government's debts. Last month, Treasury Secretary Scott Bessent told Congress that the government won't be able to pay its bills as soon as August if it's not raised soon. Mr. Trump stunned Capitol Hill in December when he said the debt ceiling "should be thrown out entirely." It's been used as leverage by both political parties in recent years in spending negotiations.
