Trump Criticizes GOP and McCarthy Over Debt Ceiling Decision

President-elect Donald Trump issued a sharp rebuke of House Republicans and former Speaker Kevin McCarthy on Sunday, calling their decision to raise the debt ceiling in 2023 a "dumb political move."

In a post on Truth Social, Trump described McCarthy as “a good man and a friend,” but argued that the extension would go down as “one of the dumbest political decisions made in years.”

Trump’s criticism appeared to focus on the bipartisan agreement made in May 2023, which raised the debt ceiling through January 1, 2025, after prolonged negotiations between the Democratic-majority Senate, the White House, and House Republicans.

The deal, passed by a vote of 314-117 in the House, was intended to prevent the U.S. government from defaulting on its financial obligations.

Despite the necessity of the measure at the time, Trump labeled it a mistake and claimed it gained Republicans nothing.

“The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine, from this past September of the Biden Administration, to June of the Trump Administration, will go down as one of the dumbest political decisions made in years,” Trump wrote.

“There was no reason to do it—NOTHING WAS GAINED, and we got nothing for it,” Trump added, suggesting that McCarthy’s decision contributed to the loss of his Speakership. Trump accused Democrats of deliberately avoiding accountability for the issue and shifting the burden onto Republicans.

“It was Biden’s problem, not ours. Now it becomes ours,” Trump wrote, calling the extension a gift to Democrats. “I call it ‘1929’ because the Democrats don’t care what our Country may be forced into. In fact, they would prefer ‘Depression’ as long as it hurt the Republican Party.”

Trump insisted that Democrats should have been forced to handle the debt ceiling issue during the Biden administration rather than allowing it to spill into his incoming term.

“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!” he concluded.

The president-elect’s statement came shortly after a separate post expressing condolences for former President Jimmy Carter, who recently passed away.

Trump’s frustrations also appear tied to his earlier push for Congress to raise the debt ceiling in December. During that period, Trump urged Republicans to resolve the issue to avoid it becoming a problem for his administration in its first months.

A bill introduced by House Speaker Mike Johnson included a debt ceiling hike but was voted down by Democrats and dozens of House Republicans, leaving the matter unresolved.

The financial markets have also struggled recently, with the Dow Jones Industrial Average falling over 4 percent in December. Trump, a close observer of market trends, likely sees the uncertainty surrounding the debt ceiling as a factor affecting market performance.

Treasury Secretary Janet Yellen has warned lawmakers that Congress will need to act quickly in 2025 to raise the debt ceiling again to prevent a U.S. default on its obligations.

While the Treasury Department can employ “extraordinary measures” to manage payments for a limited time after January 1, 2025, most experts believe these measures would last only until June.

Trump’s criticism reflects broader concerns among Republicans about fiscal responsibility and political strategy, as well as frustrations over decisions made during the Biden administration that will have implications for the early months of Trump’s term.

The debate over the debt ceiling remains a contentious issue, with its resolution critical to avoiding significant economic consequences for the United States.