The federal government is set to borrow more than $1 trillion in 2019 for the second year in a row, the Treasury Department announced Monday.
The Treasury Department is expected it issue $814 billion in the second half of 2019, which makes the total debt issuance in 2019 $1.23 trillion, according the Wall Street Journal.
President Donald Trump voiced his support for a new federal budget in the works on July 22, writing on Twitter that Republican and Democratic leaders in the House of Representatives and Senate reached a “big” compromise.
“I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy — on a two-year Budget and Debt Ceiling, with no poison pills,” Trump wrote in a tweet on Twitter. “This was a real compromise in order to give another big victory to our Great Military and Vets!”
….This was a real compromise in order to give another big victory to our Great Military and Vets!
— Donald J. Trump (@realDonaldTrump) July 22, 2019
The federal budget devised by Democratic and Republican leaders would raise the spending by $320 billion, according to the New York Times. The budget agreement would also repeal the debt limit through July 2021.
The Treasury Borrowing Advisory Committee is urging Congress to repeal the debt limit, saying the “committee strongly believes that discussions on total borrowing are more appropriately considered when making appropriations rather than when funding previously approved” spending, the Treasury Borrowing Advisory Committee said.
“Once legislation suspending the debt limit is enacted into law, Treasury will begin the process of raising its cash balance back to levels consistent with its prudent cash balance policy, primarily through sizable increases in Treasury bill issuance,” the Treasury Department said in a statement Wednesday.
The budget deal would also boost defense and domestic spending, with domestic programs receiving $10 billion more than defense programs over the next two years, according to the New York Times.
Leaders in the House and Senate hope to enact the deal before Congress leaves for its August recess.
While Trump has ramped up defense spending in his first two and a half years as president, increasing spending in every budget he’s passed since January 2017, he said in an interview with C-Span Tuesday that he would look to cut defense costs in the future, Reuters reported.
“We now have a very strong military. A lot stronger after this last budget. And then at some point very soon I’ll be able to cut back. But we had to rebuild our military,” Trump said.
When asked about his post-2020 agenda if he wins a second term, Trump said: “I think getting costs, now that the military is very close to being totally rebuilt, I think costs are going to be a big factor.”
As for now, the budget and federal spending in general have yet to become hot political topics for the 2o20 election and isn’t expected to be a topic until after, according the Wall Street Journal.