Following a deal between President Donald J. Trump and Congressional Democrats, Congress passed H.R. 601 to provide disaster relief and to extend the debt ceiling for a period of three months (to end on December 8, 2017). President Trump signed the bill on September 8, 2017.
In a letter dated July 28, 2017, Treasury Secretary Steven T. Mnuchin informed Congress that the debt ceiling must be raised by the end of September. On Wednesday, September 6, 2017, President Trump agreed to a three-month extension of the debt ceiling with Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi.
For the first time in history, the total federal debt has exceeded $20 trillion.
Commentary / Mark Howe
The fact that the national debt has exceeded $20 trillion is a stark milestone, and serves as a reminder that tax reform is not taking place in a vacuum. In light of this figure, it is evident that without a sweeping "pay for," significant tax reform will be squeezed by fiscal realities. That "pay for" could potentially come in the form of entitlement reform.
While unfortunate, the $20 trillion number could revive talks of a grand bargain of true tax reform and entitlement reform which, in turn, could spur long-term economic growth. This could be an attainable possibility as the Trump Administration has demonstrated willingness to bargain with Democrats.
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