House Republicans are advancing a plan to raise the U.S. debt ceiling by $4 trillion while simultaneously pushing Donald Trump‘s tax agenda. Legislative text released by the House Ways and Means Committee on Monday links both efforts, allowing Republicans to bypass Democratic demands for concessions on the debt limit.
The move accelerates pressure on Republicans to pass the sweeping tax bill quickly, especially as Treasury Secretary Scott Bessent warns that federal funds could run out by August. In a letter to Speaker Mike Johnson, Bessent said there’s a “reasonable probability” the Treasury’s cash reserves will be exhausted while Congress is in recess.
Meanwhile, a $5 trillion debt ceiling hike has been proposed by Senate Republicans to cover spending through the midterm elections. Some House Republicans oppose the higher amount, fueling internal debate.
Further divisions have emerged over proposed savings in areas like Medicaid reform, complicating efforts to unify GOP lawmakers behind the broader package.
The dual-track strategy reflects the party’s attempt to balance fiscal policy goals with the urgent need to avoid a national default.
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