- The new debt deal has no debt ceiling, giving the federal government a blank check until February
- The previous one day borrowing record was $238billion
By Ryan Gorman
PUBLISHED: 23:27 EST, 18 October 2013 | UPDATED: 23:27 EST, 18 October 2013
U.S. government jumped $328billion on Thursday, setting an all-time record on the first day the government was able to borrow after a last-minute debt ceiling deal was reached the previous day.
The shockingly high number came as the federal government was looking to replacing ‘extraordinary measures’ funds it had been borrowing from as it approached the borrowing limit and appeared to take advantage of no debt ceiling being enforced until at least February.
Total federal debt now adds up to $17.075trillion, according to the Treasury Department. The previous single day borrowing high was $238billion, set in 2011, according to the Washington Times.
As pointed out by the Times, the first borrowed funds once a debt limit is lifted go to replenishing the ‘extraordinary measures’ fund.
Under an unusual arrangement, the federal government has no spending limit – a hard date of February 7 has been set for a new agreement to be reached. Debt deals usually include a spending limit known as a debt ceiling.
The federal debt will now rise as high as the government sees fit between now and then, which the Times noted might be upwards of $700billion, based on recent spending trends.
Aside from the fight over the Affordable Care Act, derisively referred to as Obamacare, Republicans wanted to reign in the government’s spending by cutting funding to various programs seen as wasteful.
Backed by President Barack Obama, Democrats refused, insisting on a blank check, and won. They insist government spending will not increase, and that the extra wiggle room will only be used to pay for bills already past due.
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