Scoop: Jeffries' plan to kill the debt ceiling forever
House Minority Leader Hakeem Jeffries (D-N.Y.) has privately floated embracing the wholesale elimination of the debt limit next year rather than simply raising it, Axios has learned.
Why it matters: President-elect Trump will almost certainly need Democratic votes when the debt limit's "X-date" is reached β which experts say could be as soon as mid-June.
- Republicans have a significant bloc of debt and deficit hawks who will likely vote against raising the debt ceiling under any circumstances.
- That gives the Democratic leader considerable leverage to use the debt limit to force concessions.
State of play: House Democrats ruled out touching the debt ceiling as part of the government funding negotiations.
- When the funding fight is wrapped up, Jeffries has said, his party may engage with Trump's demand that the debt ceiling be done away with, according to a senior Democratic lawmaker and two other sources familiar with the matter.
Zoom out: Trump stunned Capitol Hill on Thursday by vowing to "lead the charge" to abolish the debt ceiling as part of a government funding bill.
- Democrats opted for formal opposition to the idea βΒ with many arguing it would simply be a blank check for Trump's tax cuts.
- But scrapping the debt ceiling is a proposal many in the party have long embraced βΒ and some Democrats like Rep. Don Beyer (D-Va.) and Sen. Elizabeth Warren (D-Mass.) couldn't help but endorse Trump's stipulation.
What we're hearing: Rep. Brendan Boyle (D-Pa.), Jeffries' leader on the House Budget Committee, has been telling colleagues "all week" that they should push for the elimination of the debt limit, a House Democrat told Axios.
- Boyle introduced a bill with dozens of his House Democratic colleagues last year to allow the Treasury Department to keep paying down the federal debt unless a veto-proof majority of Congress votes to stop them.
- He told Axios: "I believe 2025 is the time to permanently end the perennial debt ceiling dysfunction. I have been advocating for my Debt Ceiling Reform Act, which would end the debt ceiling as we know it."
Zoom in: Eliminating the debt limit has also been discussed amongst Senate Democrats, with Warren raising the issue in private caucus meetings this week, per sources.
- Warren will become the top Democrat on the influential Senate Banking Committee next year, shaping the caucus' messaging on fiscal fights next year.
Yes, but: Trump would likely have trouble with his own side and face pressure to back off eliminating the debt ceiling if he pursues it.
- Nearly 40 Republicans voted with Democrats against a government funding bill on Thursday that included a two-year debt limit extension.
- That vote came even after Trump's potent threat of primary challenges against Republicans who defy him.
The bottom line: One senior Democratic aide told Axios that Elon Musk's involvement in spending negotiations had poisoned the well and that the party was focused on averting a government shutdown.
- If that is done, the aide said, the party would engage in discussions about how to address the debt limit.