Treasury: U.S. federal borrowing will nearly double this year, to almost $1 trillion, due to the 'fiscal outlook'

Treasury Secretary Steven Mnuchin, right, and his wife Louise Linton, hold up a sheet of new $1 bills, the first currency notes bearing his and U.S. Treasurer Jovita Carranza's signatures, We
(Image credit: Jacquelyn Martin/The Associated Press)

While most of Washington was fixated on the classified memo from House Intelligence Chairman Devin Nunes (R-Calif.) last week, the Treasury Department said that it expects to borrow $955 billion in fiscal 2018, an 84 percent jump over fiscal 2017. The Treasury Department mainly attributed this near-doubling of government borrowing to the "fiscal outlook," The Washington Post notes, but the Congressional Budget Office said last week that the tax overhaul Republicans passed in December will lower tax receipts by $10 billion to $15 billion a month this year. The tax law will add at least $1 trillion to the national debt over 10 years, congressional analysts forecast, and that accounts for economic growth.

"We're addicted to debt," says Marc Goldwein at the Committee for a Responsible Federal Budget, blaming both Republicans and Democrats for the problem. Treasury predicts the U.S. will borrow more than $1 trillion in 2019 and more than $1.1 trillion in 2020, and this year's $955 billion is already the biggest jump in borrowing, as a share of GDP, outside of a recession year since Ronald Reagan's presidency, former Treasury adviser Ernie Tedeschi tells the Post. The U.S. borrowed $1.79 billion in 2009, during the Great Recession, and $1.1 trillion in 2012, but borrowing has been significantly below $1 trillion since 2013.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.