New Republican tax bill to raise debt limit by $4 trillion

House Republicans are pressing ahead with a plan to raise the U.S. debt ceiling by $4 trillion as part of a broader legislative effort to advance President Trump’s tax agenda.

The proposal, released Monday in a bill drafted by the House Ways and Means Committee, aligns with the framework adopted by congressional Republicans last month that outlines the steps for pushing through Trump’s tax priorities.

By including the debt ceiling increase in the same legislation as the tax overhaul, Republicans aim to bypass Democratic demands for negotiations or concessions in exchange for supporting a debt limit hike. However, combining the two efforts could put pressure on GOP lawmakers to quickly pass a sweeping bill under a tight timeline.

Treasury Secretary Scott Bessent has already urged Congress to raise or suspend the debt limit by July to prevent a default on the federal government’s $36 trillion debt. In a letter to House Speaker Mike Johnson (R-La.) on Friday, Bessent warned there’s a “reasonable probability” that the Treasury will run out of cash and extraordinary funding measures by August—when lawmakers are scheduled to be in recess.

Notably, there is a split between the two GOP-controlled chambers on how much to raise the ceiling. While the House plan calls for a $4 trillion increase, the Senate’s budget framework outlines a $5 trillion hike. Some Senate Republicans believe the higher amount would avoid another debt standoff until after the next midterm elections, though not all in the party are on board with that figure.

Disagreements within the House GOP have also surfaced over proposed spending cuts, including potential changes to Medicaid, adding further complexity to efforts to unify the party behind the larger legislative package.

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