Trump presses Republicans to raise debt limit through 2029 as bond yields climb

President Donald Trump is pressing Republican leaders to raise the federal debt limit through 2029 so the government can keep borrowing through the end of his term without a showdown with Democrats after the midterms, The Hill reported.

Trump wants Senate Majority Leader John Thune and House Speaker Mike Johnson to include another borrowing-authority increase, described as about $5 trillion, in a third budget reconciliation package. Reconciliation can pass the Senate with a simple majority, avoiding a 60-vote filibuster hurdle.

The push comes as the national debt has reached about $40 trillion. Long-term borrowing costs have risen with that load. The Hill said the 30-year Treasury yield recently touched about 5.3%, the highest since 2007, and the average 30-year fixed mortgage reached about 6.6%.

Treasury Secretary Scott Bessent responded last week by announcing the department would double the limit on how much longer-dated government debt it can buy back from investors, a move meant to ease pressure in that corner of the market. Bond yields fell briefly after the announcement, then climbed again in subsequent trading, according to market coverage.

Some Republicans want deeper deficit cuts before supporting another large debt-limit increase. Sen. Rand Paul has promoted a plan to trim projected federal spending and told The Hill he favors less debt, not more. Leadership must nearly unify the conference for a party-line reconciliation bill.

Trump's earlier major tax-and-spending law already raised the debt ceiling by $5 trillion. Advisers argue locking in borrowing room through 2029 would avoid a high-stakes negotiation if Democrats gain the House or both chambers next year. Thune has previously cautioned that adding a debt-limit rider complicates already tight vote counts.

For households, higher long-term yields feed into mortgages, auto loans and some credit products. Savers holding longer Treasury funds see price swings when yields move. Congress still must agree on any reconciliation text before the borrowing authority changes.