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Examining the Consequences: The Possibility of $2.3 Trillion in New Borrowing by the U.S. Government

According to an analysis by a budget watchdog group, S. lawmakers are currently considering enacting policies that could result in $2.3 trillion in new borrowing. The analysis from the Committee for a Responsible Federal Budget released on Wednesday states that lawmakers have already enacted $1.3 trillion of ten-year debt reduction this year, the most since 2011.

Unfortunately, the policies under consideration for passage in the coming months could potentially erase these savings. The analysis estimates that if enacted on a temporary basis, these policies could add up to $675 billion to the debt. However, if made permanent, the total could reach up to $2.3 trillion.

Although it is highly unlikely that all of these policies would make it into a package, there is a possibility that some combination could find itself alongside must-pass legislation, based on past trends as stated by the CRFB.

Currently, Congress passed a "laddered" continuing resolution in November with a final spending deadline of Feb. 2. As a result, lawmakers will need to pass an additional spending bill to keep the government funded throughout the rest of fiscal year 2024.

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