Debt Ceiling Negotiations Divide GOP as Default Looms
Republicans face internal disagreements over how to address the debt limit, with President-elect Trump pressing for a resolution before the U.S. risks default.
- Speaker Mike Johnson has signaled openness to removing the debt ceiling provision from a broader reconciliation package focused on President-elect Trump's legislative priorities.
- President-elect Trump has expressed frustration with GOP lawmakers for failing to address the debt ceiling before his inauguration, tasking Senate Majority Leader John Thune with resolving the issue.
- Some Republicans, including Sen. Ted Cruz and Sen. Ron Johnson, strongly oppose Trump's suggestion to eliminate the debt ceiling entirely, citing it as a critical tool for fiscal accountability.
- Treasury Secretary Janet Yellen has warned that the U.S. will reach its borrowing limit between January 14 and January 23, urging Congress to act to avoid economic consequences.
- House Republicans are debating whether to tie the debt ceiling increase to other legislative priorities, such as tax cuts and disaster aid, or to negotiate a standalone bill with Democrats.