Less than two weeks before the U.S. federal government faces a potential shutdown, the national debt of the U.S. has surpassed the historic milestone of $33 trillion, according to the Treasury Department.
The national debt, now at $33.04 trillion, is the money the U.S. government has borrowed to cover operating expenses. A 50% surge in federal spending between fiscal 2019 and fiscal 2021 contributed to the national debt swelling, according to the Treasury.
Tax cuts, COVID stimulus funds and less tax revenue during the lower employment years of the pandemic all contributed to higher government borrowing, CNBC reports.
Congress is currently deadlocked over a spending bill to keep the government running until the next funding cycle—with the national debt at the center of that debate.
Congress has until Sept. 30 to pass a spending bill.
Republicans lawmakers want the government to cut back on spending and have proposed an 8% cut in domestic programs, excluding national security.
Democrats back President Joe Biden’s spending plans, including the Inflation Reduction Act. The University of Pennsylvania estimates the Act will cost more than $1 trillion over the next decade.
The Democrats also blame what they say are trillions in Republican tax cuts for the $33 trillion national debt, with White House Assistant Press Secretary Michael Kikukawa telling CNBC such cuts over the past 20 years have been “skewed to the wealthy and big corporations.”
“Congressional Republicans want to double down on trickle-down [economics] by extending President Trump’s tax cuts and repealing President Biden’s corporate tax reforms,” Kikukawa said.
He added that Biden wants wealthy Americans and big corporations to pay what they owe to the IRS, as well as to slash subsidies to oil and pharmaceutical companies.
These measures would cut the national debt by $2.5 trillion, Kikukawa said.