$3T as pandemic costs skyrocket

Treasury to borrow record-breaking $3T as pandemic costs skyrocket

That huge figure dwarfs the nearly $1.3 trillion that Treasury borrowed for all of last year.

By CAITLIN EMMA

The Treasury Department announced today that it will borrow a record-breaking $3 trillion through June to offset the enormous costs of the coronavirus outbreak.

That huge figure — spanning just three months during the second quarter of this year — dwarfs the nearly $1.3 trillion that Treasury borrowed for all of last year.

The massive borrowing increase is “primarily driven“ by the pandemic, the agency noted, “including expenditures from new legislation to assist individuals and businesses“ and “changes to tax receipts.” Treasury also said it intends to borrow an additional $677 billion in the third quarter of this year through September.

Interest rates are low, making the federal government’s growing debt burden a little more palatable.

Congress has authorized nearly $3 trillion in new spending over four separate bills in just two months, providing hundreds of billions of dollars for hard-hit small businesses, struggling industries, new unemployment benefits, overburdened hospitals, cash-strapped states and more.

A fifth round of relief could easily top $1 trillion, although there’s little consensus among congressional leaders on another package.