Also known as the debt limit, this is a law that restricts the total amount of money the government can borrow to pay its bills.
This includes paying for federal employees, the military, Social Security and Medicare, as well as interest on the national debt and tax refunds.
Every so often, US Congress votes to raise or suspend the ceiling so it can borrow more.
Trump adding this condition to the deal was an unexpected demand that has made it harder for right-wing Republicans who often rail against increased government spending to back the bill.
The debt ceiling was going to have to be increased in the coming months regardless of the efficiency drive being promised.
But by demanding it happen now, some analysts believe Trump is signalling the cost of his proposed tax cuts and tougher border restrictions will test the ceiling limits. And he prefers the fight over the increase happens before he takes office.
Democrats are usually in favour of raising the debt ceiling without strings but they are in no mood to help Republicans now.
The risk to Trump is that the mini-rebellion chips away at the cloak of invincibility he has worn since the election.
And it raises questions over how smoothly his party will be able to deliver on his campaign promises that require legislation.
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