The national debt of the United States has surpassed $33 trillion for the first time in history, just days before a potential government shutdown due to a lack of funding authorization. The debt represents the amount of money borrowed by the federal government to cover operating expenses.
The U.S. Department of the Treasury reported that federal spending increased by approximately 50% between fiscal years 2019 and 2021, contributing to the debt exceeding $33 trillion. Factors such as tax cuts, stimulus programs, and decreased tax revenue due to high unemployment during the Covid-19 pandemic have also played a role in driving government borrowing to new heights.
The issue of the national debt has become a point of contention in Congress, where lawmakers are divided over a spending bill that would sustain the government until the next funding cycle. Republican lawmakers are advocating for reduced spending, while Democrats support President Joe Biden's programs, including the Inflation Reduction Act, which is projected to cost over $1 trillion over the next decade according to a budget model from the University of Pennsylvania.
In response, House Republicans have released their own bill to fund the government until October 31, proposing an 8% cut to domestic programs with exceptions for national security. However, it is unlikely to pass the Democrat-controlled Senate.
To avoid a government shutdown, Congress must pass a spending bill by September 30. The debate over government spending and the national debt continues to be a source of tension and disagreement between political parties.