US government debt exceeds $34 trillion for the first time in its history

The total public debt of the United States has surpassed $34 trillion for the first time in history, according to the daily statement from the US Treasury Department. This announcement comes as Congress prepares for upcoming battles over federal funding. The total outstanding public debt reached $34.001 trillion, with the debt subject to the federal debt ceiling amounting to $33.89 trillion.

This milestone comes on the heels of the federal debt surpassing $33 trillion in September, driven by factors such as a rise in the federal deficit due to reduced tax revenues and increased government spending.

As Congress reconvenes, it faces deadlines on January 19 and February 2 to address government spending through September. Republicans are pushing for reductions in discretionary spending for the fiscal year 2024 below the previously agreed-upon maximum limits. Lawmakers are also considering emergency aid for Ukraine and Israel, possibly with unrelated provisions related to US border security.

The potential failure to reach agreements on over 10 fiscal spending bills for 2024 could lead to a government shutdown, a scenario lawmakers aim to avoid. However, reaching compromises may become more challenging as the presidential and congressional elections approach in November.