U.S. Senate GOP Pushes for $5 Trillion Debt Limit Boost in Bold Mega-Bill

WASHINGTON — U.S. Senate Republicans announced plans on Monday to increase the nation’s debt limit by $5 trillion, exceeding the House GOP’s proposal by $1 trillion. This provision is embedded in the Senate Finance Committee’s 549-page package, which also outlines tax law modifications and proposed changes to Medicaid.

The debt limit increase forms part of a broader legislative package comprised of ten bills, aiming for floor debates and amendment votes in the coming days. Senate Majority Leader John Thune, R-S.D., aims to pass this legislation before the Fourth of July break; however, revisions will necessitate a return to the House.

With minimal margins in both chambers, GOP leaders are aware that losing too many party members could jeopardize getting the bill to President Trump for approval. The previous debt limit suspension expired on January 1, complicating the situation as Congress must act promptly to avoid more drastic financial maneuvers.

The proposed increase may create tension among far-right members, who argue it undermines fiscal responsibility. Without action, the Treasury Department risks exhausting its extraordinary measures, leading to a potential default.

Treasury Secretary Scott Bessent had previously urged congressional leaders to tackle the debt limit before their August recess. According to the Congressional Budget Office, lawmakers face a deadline between mid-August and the end of September to prevent a default, highlighting the urgency of bipartisan negotiations.

Historically, debt limit deals are reached through negotiations between the White House and congressional leaders of both parties. However, GOP leaders are focusing on raising the limit through their mega-bill to sidestep any necessary compromises with Democrats.