The Debt Ceiling Fiasco

By Pranav Sathyanarayanan12/24/2024
The Debt Ceiling Fiasco

1,500 pages down to just 100. Trump doesn't get his way with the debt ceiling, while Musk flexes his social media machine.

Last Wednesday, Trump declared that the spending bill (which ultimately was passed into law on Friday 12.20.2024) must include provisions to raise or suspend the debt ceiling.

Anything else is a betrayal of our country

Ultimately, this did not come to pass. What was the timeline and why was Trump so insistent on this position that is contrary to the politics of his party?

The timeline from the bill’s introduction to its passage was as follows:

December 17, 2024: The 1,547-page bipartisan bill was introduced in the House.

December 19, 2024: The House rejected the proposed funding measure in a 174-235 vote. The bill faced opposition from a unified bloc of Democrats and 38 Republicans, leading to its failure.

December 20, 2024: After further negotiations, a revised, slimmed-down version of the bill was introduced. This version reduced the original 1,547-page bill to 118 pages, eliminating certain provisions to gain broader support.

December 21, 2024: In the early hours, the revised bill passed the House with a 366-34 vote and the Senate with an 85-11 vote. President Biden signed the stopgap funding bill into law, preventing a government shutdown and ensuring operations continue until March 14, 2025.

In the days in-between, Donald Trump publicly supported Elon Musk who sent over 100 posts on X deriding the bill and its provisions. Due to his recent, forced, modifications to the X feed algorithm, it's possible that his posts swayed public opinion and general perception of the bill.

Some notable items removed during the tumultuous week include:

Congressional Pay Raises: The original bill proposed a 4% salary increase for members of Congress, marking the first raise since 2009. This provision was eliminated in the final version.

State Department’s Global Engagement Center: Funding for this center, which faced criticism for promoting online censorship, was removed.

RFK Stadium Land Transfer: A provision to transfer the Robert F. Kennedy Memorial Stadium site to the District of Columbia, intended to facilitate a new stadium for the Washington Commanders, was excluded.

Deepfake Pornography Legislation: Proposed regulations to criminalize the distribution of AI-generated non-consensual pornography were omitted.

Pediatric Cancer Research Funding: Funding for the Gabriella Miller Kids First pediatric cancer research program was removed.

Pharmacy Benefit Manager Reforms: Provisions requiring pharmacy benefit managers to pass 100% of rebates to prescription drug plan sponsors were cut.

Debt Ceiling Suspension: An initial proposal to suspend the debt ceiling until January 2027 was not included in the final bill.

That last point is the focal point of Trump's issue with the original bill.

The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge

Trump has taken a stance more commonly taken by the Democrats, and resisted by many in his own party. He views the ceiling as a psychological constraint more than a real one, and one that can be used as political leverage in a debate. Whether he feels this way ideologically, or simply wants to remove it to prevent impediments to his economic agenda over the next 4 years remains to be seen.

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