Under the 2023 budget deal Congress suspended the debt ceiling until January 1, 2025. The US Treasury will be able to pay its bills for several months beyond that deadline, but Congress will have to address the issue, possibly around mid-year, Reuters reported.
In a post on Truth Social, Trump said, "The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine... will go down as one of the dumbest political decisions made in years."
He added, "The Democrats must be forced to take a vote on this treacherous issue NOW, during the Biden Administration, and not in June. They should be blamed for this potential disaster, not the Republicans!"
Republicans, however, will control both chambers of Congress beginning on January 3 and at least some of the party's lawmakers would have to go along with a debt limit increase or elimination in order for it to become law.
Without the 2023 debt limit increase, the United States would have seen a historic default on its debt payments that would have roiled financial markets worldwide.
A debt default would also likely have brought a downgrade in the US credit rating, raising borrowing costs for businesses and individuals.