U.S. debt rises above $34 trillion for first time

The U.S. national debt has eclipsed $34 trillion for the first time, the Treasury Department said Tuesday, as persistently large annual deficits continue to add to the federal tab.

Roughly three months after the debt first hit $33 trillion, the new milestone comes as lawmakers brace for fiscal showdowns over spending levels in the new year. Government borrowing costs have increased due to the Federal Reserve’s campaign to raise interest rates, spending has remained above pre-covid levels, and tax receipts dropped last year — all worsening the nation’s fiscal outlook.