GOP skepticism grows over Trump's debt ceiling extension amid $40 trillion debt

President Trump is pushing to raise the debt limit through the end of his term using reconciliation, but many Republicans are hesitant given the national debt has reached $40 trillion. Senator Thom Tillis and others argue that extending the borrowing authority would avoid needed fiscal reforms, while bond market investors are demanding higher premiums. The program's trustees have moved up insolvency dates for Social Security and Medicare, adding urgency to the debate.

The proposed extension would authorize roughly $5 trillion in additional borrowing, potentially pushing total federal debt toward $45 trillion or more by 2029. Tillis argues this would eliminate the primary legislative leverage for forcing entitlement reforms before Social Security's projected insolvency in 2032 and Medicare's in 2033, with annual deficits already nearing $2 trillion.

Bond market stress is already visible, with 30-year Treasury yields reaching 5.3 percent, the highest level since 2007, and average mortgage rates climbing to 6.6 percent. Treasury Secretary Bessent responded by doubling the government's debt buyback limit, a move that only temporarily steadied markets before yields crept back upward.