The U.S. national debt has reached $34 trillion, according to the Treasury Department, marking a record pace of increase driven by persistent annual deficits. $1 trillion was added to the debt in just the past three months. This surge occurs amidst stalled budget negotiations in Congress as lawmakers debate ways to fund the government and address the burgeoning federal deficit. With federal spending laws expiring soon, the threat of a partial government shutdown looms if Congress fails to act.
Earlier, the U.S. Senate passed a bill suspending the debt limit and setting new spending caps, averting a potential default on U.S. debt. The dramatic increase in debt is poised to be a major topic of discussion, especially with the expiration of several provisions of the 2017 GOP tax cuts approaching in 2025. The Federal Reserve’s interest rate hikes have increased borrowing costs for the government, adding to the fiscal strain.
Experts at the Committee for a Responsible Federal Budget have expressed deep concern over this milestone, labeling it a “truly depressing achievement.” The organization’s president, Maya MacGuineas, criticized the political unwillingness to address the issue, while senior vice president Marc Goldwein warned of the unsustainable nature of the fiscal situation. The debate over the causes of the debt increase is polarized, with President Joe Biden attributing it to GOP tax cuts and Republicans pointing fingers at Biden’s spending policies. This escalating debt, now $2 trillion higher than at the start of 2022, poses a challenge to the nation’s economic stability.
Primary Sources: UPI Rating, Reuters Rating
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