Is the Risk of U.S. Debt Default Looming? Trump: Abolish the Debt Ceiling Entirely to Avoid Economic Disaster

As the US federal deficit "continues to soar," President Trump has finally revealed his "true feelings": the US should abolish the debt ceiling system. He urged both parties to take action to abolish it, stating that it was rare for him to agree with Senator Elizabeth Warren, a senior Democrat.

On his social media platform Truth Social, he wrote, "I am pleased to announce that after all these years, I finally agree with Senator Elizabeth Warren on certain issues. The debt ceiling should be completely abolished to prevent an economic disaster. It is too destructive and should not be controlled by politicians who want to exploit it."

"It could have a terrible impact on our country and, indirectly, even on the world. I also like Senator Warren's second statement about $4 trillion, but this must be done in the shortest possible time. Let's unite, Republicans and Democrats, and take action together!" he added.

Trump shared a post from Warren on the social media platform X last Friday. Warren had expressed her agreement with Trump's view that the debt ceiling "should be abolished" and called for a bipartisan bill to "get rid of it forever." Trump also stated that he had "always agreed with her (Warren's) views" on this issue, adding that he had not discussed it with her privately.

Last Friday, Trump also joined Musk at a press conference to express their hope to "see it (the debt ceiling) terminated and abolished, with no more votes every five or ten years, because it is catastrophic for our country."

Trump's proposal is undoubtedly a "bombshell" for Washington politicians. The federal debt ceiling is like the "credit limit" on the government's "credit card," specifying the maximum amount the US government can owe. Simply put, the current situation is that the Treasury Department's limit is almost exhausted, and government spending could "run out" at any time.

This system was originally intended to constrain the government from overspending, but it later became a tool for partisan bickering. Every time the debt approaches the limit, members of Congress from both sides start arguing fiercely, with neither side willing to compromise. If Congress does not raise the debt ceiling or suspend it, the US government could shut down or even face a debt default.

At a time when Trump is vigorously promoting his "Big and Beautiful" bill, it's no wonder he came up with this idea: just abolish it. According to an analysis released by the Congressional Budget Office (CBO) on Wednesday, although the "Big and Beautiful" bill will reduce taxes by $3.75 trillion over the next decade, it will also lead to an increase in the deficit by $2.4 trillion.

It is worth mentioning that the "Big and Beautiful" bill also includes raising the national debt ceiling by $4 trillion (currently at $36 trillion) to allow for more borrowing. Russell Vought, Director of the US Office of Management and Budget, said on Wednesday evening, "President Trump believes it is very important that debt extension be part of this bill."

"From a philosophical perspective, both parties should support reflecting on the fact that this tool provides too much leverage to the opposition or minority party, allowing them to hold hostage a government trying to do great things for the American people," he continued.

Earlier, US Treasury Secretary Scott Bessent also urged Congress to raise the US debt ceiling by mid-July to prevent default.