According to a report released by the US Treasury Department on the same day, the total public debt of the US federal government has exceeded $34 trillion for the first time. The move comes as U.S. lawmakers prepare for a series of battles over federal funding in the coming weeks.

According to the statement of the US Treasury on December 29, 2023, the total outstanding national debt increased to $34.001 trillion from $33.911 trillion the previous day; Debt counting the federal debt ceiling rose to $33.89 trillion from $33.794 trillion. This "restricted debt" category excludes unamortized discounts on Treasury bills and zero-coupon bonds, Federal Financing bank-issued debt, and guaranteed debt from certain other agencies. Previously, the U.S. federal debt only crossed the $33 trillion mark in September 2023.

U.S. lawmakers will return to the nation's capital next week to meet two deadlines, January 19 and February 2, to resolve government spending issues left over from September 2023. Republicans are demanding that discretionary spending for fiscal year 2024 be cut below the ceiling agreed to in June 2023. Lawmakers are also expected to pass emergency aid to Israel and other countries, possibly with some U.S. border security provisions attached. If the 12 spending bills for fiscal year 2024 are not approved, federal agencies will be shut down.

Maya McGinas, chairwoman of the Commission on Federal Budget Accountability, said the $34 trillion federal debt is "a truly frustrating achievement" because of political leadership's unwillingness to make tough fiscal choices. "We still expect policymakers to take further action to reduce borrowing by raising taxes, reducing spending or creating a fiscal commission, and ideally doing all of the above," McGinias said in a statement.