President Trump is right. We should junk the debt limit.

The Congressional Budget Office announced this week that the US government will run out of money this July or August unless Congress raises the debt limit, which puts a ceiling on what Uncle Sam can borrow.

House Democrats are sending an early warning shot as the government’s borrowing window inches to a close: winning Democratic support for a debt-ceiling hike will come at a cost for Republicans.

The minority-party Democrats have little power to dictate the debate, but a number of conservative Republicans have long opposed debt limit increases to protest deficit spending. The dynamics could give Democrats leverage in the fight — and they say they intend to use it.

Donald Trump repeated his demand for the suspension – or even elimination – of the federal borrowing limit and continued a political crisis which threatens a US government shutdown, insisting any shutdown should happen under Joe Biden’s watch rather than his own upcoming administration.

President-elect Donald Trump said Thursday that Congress should get rid of the debt ceiling, a day after he came out against a deal reached by congressional lawmakers to fund the government before a shutdown occurs.

In a phone interview with NBC News, Trump said getting rid of the debt ceiling entirely would be the “smartest thing it [Congress] could do. I would support that entirely.”

“The Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge,” Mr. Trump added. 

Lawmakers in both parties are growing increasingly concerned about where a handshake deal between the White House and former Speaker Kevin McCarthy (R-Calif.) on spending stands as they negotiate how the government should be funded next year.

The Biden administration and House GOP leadership worked to pass legislation known as the Fiscal Responsibility Act (FRA) in late spring as part of a larger deal to suspend the debt ceiling and set budget caps for Congress to work from when it hashes out its full-year funding bills months later. 

Sen. Joe Manchin (D-W.Va.), who has railed against the nation’s record-high debt, on Thursday called Fitch Ratings’s downgrade of the U.S. credit rating from AAA to AA+ a “historic failure of leadership by both political parties and the executive branch.” 

Manchin, who is flirting with a presidential run as a third-party candidate backed by the group No Labels, has regularly criticized what he views as the lack of bipartisan cooperation in Washington.

A US credit downgrade by Fitch was "entirely unwarranted," Treasury Secretary Janet Yellen said Wednesday, pushing back against the second-ever decrease by a major ratings agency following repeated debt limit standoffs in Washington.

Her remarks came a day after the world's biggest economy lost its top-tier credit rating from Fitch as the agency lowered it a notch from AAA to AA+, drawing fiery disapproval from the White House and Treasury.

President Biden's administration is placing the blame for the United States' drop in credit rating on former President Donald Trump and the Jan. 6 riots.

Fitch announced Tuesday it has officially downgraded the United States' long-term foreign-currency issuer default rating to "AA+" from "AAA," saying the downgrade "reflects the expected fiscal deterioration" and the nation's heavy debt burden.

An administration official claimed to FOX Business on Wednesday that the underlying model was AAA until former President Donald Trump's administration.

Fitch Ratings downgraded its US debt rating on Tuesday from the highest AAA rating to AA+, citing “a steady deterioration in standards of governance.”

The downgrade comes after lawmakers negotiated up until the last minute on a debt ceiling deal earlier this year, risking the nation’s first default. But the January 6 insurrection was also a major contributing factor.

The US government's credit rating has been downgraded following concerns over the state of the country's finances and its debt burden.

Fitch, one of three major independent agencies that assess creditworthiness, cut the rating from the top level of AAA to a notch lower at AA+.

Fitch said it had noted a "steady deterioration" in governance over the last 20 years.

US Treasury Secretary Janet Yellen called the downgrade "arbitrary".

It was based on "outdated data" from the period 2018 to 2020, she said.