U.S. Debt Surpasses $34 Trillion Due To Trump's Borrowing

The federal government’s gross national debt has exceeded $34 trillion, marking a record high that signals impending political and economic challenges to improve America’s balance sheet in the coming years, Fatima Hussein and Josh Boak reported for the Associated Press (AP).

The government, under then-President Donald Trump, borrowed heavily to stabilize the economy and support recovery, resulting in an addition of $8 trillion to US debt in just four years.

The US Treasury Department issued a report on Tuesday documenting US finances, which have become a source of tension in a politically divided Washington.

The government could potentially face partial shutdowns without an annual budget in place. GOP lawmakers and the White House agreed last June to temporarily lift the nation’s debt limit, avoiding the risk of a historic default. This agreement is in effect until January 2025.

The national debt reached $34 trillion several years earlier than pre-pandemic projections.

The Congressional Budget Office’s January 2020 estimates had gross federal debt exceeding $34 trillion in fiscal year 2029. However, due to the faster-than-expected growth of debt caused by the multi-year pandemic starting in 2020, which led to the shutdown of much of the US economy, the debt surpassed projections.

The government, under then-President Donald Trump, borrowed heavily to stabilize the economy and support recovery, resulting in an addition of $8 trillion to US debt in just four years.

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