US National Debt Surges 1.05% to $36.6 Trillion in One Week

The US national debt has surged by $384.7 billion in just one week, reaching an all-time high of $36.6 trillion. This significant increase is primarily attributed to the refilling of the Treasury General Account (TGA), as the government resumes borrowing to cover delayed payments and restore cash reserves. The rapid rise in debt comes on the heels of a massive spending bill that was recently cleared by Congress and signed into law by President Trump. This legislation raised the debt ceiling by $5 trillion, marking the largest increase in US history. The new debt ceiling stands at $41.1 trillion, which is expected to avert default until 2027.

The spending bill includes a permanent extension of the 2017 tax cuts, which is projected to reduce federal revenue by trillions of dollars over the next decade. According to the Congressional Budget Office (CBO), the bill is forecasted to add around $2.8 trillion to the deficit over the next 10 years. However, the Trump administration disputes this estimate, with Treasury Secretary Scott Bessent asserting that the bill’s tax cuts and deregulation measures will stimulate economic growth, potentially offsetting the deficit concerns. The administration's optimism is based on the belief that the economic benefits of the legislation will outweigh the financial costs, although this remains to be seen.

This rapid increase in the national debt raises concerns about the long-term sustainability of the US fiscal policy. The significant rise in borrowing and spending could have implications for future economic stability and the government's ability to manage its financial obligations. The administration's confidence in the economic growth spurred by the tax cuts and deregulation remains a point of contention, as analysts and economists continue to debate the potential impacts of the legislation. The coming years will be crucial in determining whether the administration's optimistic projections hold true or if the deficit concerns materialize as forecasted by the CBO.