With the national debt above $36 trillion, newly-confirmed Treasury Secretary Scott Bessent vowed to rein in government spending.
The investor and hedge fund manager, who cleared the Senate on Monday with a vote of 68-29, also supports renewing President Donald Trump’s 2017 tax cuts that will cost an estimated $4 trillion.
“As we begin 2025, Americans are barreling toward an economic crisis at year end,” Bessent said during his confirmation hearing. “If Congress fails to act, Americans will face the largest tax increase in history, a crushing $4 trillion tax hike. We must make permanent the 2017 Tax Cuts and Jobs Act and implement new pro-growth policies to reduce the tax burden on American manufacturers, service workers and seniors.”
The U.S. national debt stands at more than $36 trillion and is expected to surpass $37 trillion this year. In fiscal year 2024 alone, the national debt grew by $2.5 trillion, reaching $36.3 trillion.
“Scott Bessent brings a wealth of private-sector experience in the economy and markets to his new role, as well as a concern for the needs of working Americans,” Senate Majority Leader John Thune said on X. “I am committed to working with Mr. Bessent and the Trump administration to continue to protect American businesses.”
The 118th Congress had passed a Continuing Resolution in December to keep the government funded until March. In order to win necessary votes from some Democrats, Republicans axed a proposed two-year debt ceiling suspension requested by Trump.
Outgoing Treasury Secretary Janet Yellen told Congress in a letter on Dec. 27 that Treasury expects to hit the new debt limit between Jan. 14 and Jan. 23, “at which time it will be necessary for Treasury to start taking extraordinary measures.”
Bessent’s confirmation follows that of Gov. Kristi Noem, R-S.D., whom the Senate approved Saturday in a 59-34 vote to be Secretary of Homeland Security.
