The United States Treasury Department revealed new estimates last week that show the country set to double borrowing in the current fiscal year, a total $995 billion that would nearly double last fiscal year’s $519 billion.
The nearly $1 trillion figure would be the highest borrowing level in six years according to the Washington Post. Last fiscal year the government borrowed $519 billion, a figure accumulated over the end of outgoing President Barack Obama and current President Donald Trump. This will be the first fiscal year presided over entirely by Trump and the current Congress.
Congress faces yet another spending showdown leading up to February 9, just weeks after the last one led to a short government shutdown. This comes also as the next decision on raising the debt limit looms.
The Congressional Budget Office (CBO) has estimated that the government could run out of funds by the first half of March according to the Hill. The CBO pointed to a decrease in tax revenues as a result of the new Tax Cuts and Jobs Act.
In the past week, Treasury Secretary Steve Mnuchin urged Congress to pass a debt ceiling increase “as soon as possible.”
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