Republican lawmakers are considering a plan to raise the U.S. debt ceiling swiftly during the final weeks of this congressional term, a move that would deprive Democrats of a powerful bargaining chip to influence Donald Trump's administration even if they win a majority in Congress.
Success with this maneuver would also eliminate a low-probability but potentially highly destructive risk facing global financial markets, since the federal government's borrowing authority is expected to run out in the second half of 2027.
If Republicans lose their majority in either the House or the Senate in the November 3 elections, a fierce standoff between Trump and Democrats could ensue, or even worse, a U.S. payment default. According to estimates from the Bipartisan Policy Center, that risk would rise in the second half of 2027.
After the November midterm elections conclude and Congress reconvenes, the legislative agenda will be packed, but raising the debt ceiling sits near the top of the priority list for Republican budget leaders. The newly elected Congress will be sworn in in early January.
Senate Finance Committee Chairman Mike Crapo said on Wednesday: "We should get this done as early as possible." That committee holds jurisdiction over fiscal matters.
Senate Majority Leader John Thune struck a more cautious tone on Wednesday. He said using the final weeks of the current Republican-controlled Congress to implement the plan through a special budget procedure that does not require Democratic cooperation is "one option."
The White House has not yet taken a position on this legislative approach. Trump has in the past called for abolishing the debt ceiling. Last year, during negotiations over his large tax and spending bill, Trump said the borrowing limit "should be scrapped entirely to prevent economic catastrophe."