When Donald Trump took office, he promised to cut waste and reform government. What followed was a massive surge in federal spending, driven by tax cuts, defense hikes, and an unprecedented global crisis.
When analyzing the financial record of President Donald J. Trump’s first term (2017–2021), one number looms largest: $8.4 trillion. That is the estimated amount of new ten-year borrowing approved during his four years in office, a staggering figure that accelerated the nation’s journey toward a multi-trillion-dollar debt.
This fiscal boom wasn't the result of a single policy; it was a blend of major legislative actions, executive priorities, and, ultimately, a global pandemic that required unprecedented government intervention.
The Three Pillars of Debt
The substantial increase in national debt—which rose by an estimated $7.2 trillion during his first term—can be attributed to three primary drivers:
1. The Tax Cut Gambit: The TCJA
The first major fiscal event was the passage of the Tax Cuts and Jobs Act (TCJA) of 2017. While framed as a measure to boost the economy, it directly reduced government revenue, functionally operating as a major new expenditure on the government’s balance sheet.
- Corporate Rate Plunge: The most consequential change was the deep cut in the corporate tax rate from 35% to a flat 21%.
- Individual Relief: For families, the act doubled the standard deduction and expanded the Child Tax Credit.
The net effect of these cuts was an estimated $2.0 trillion addition to the national debt over ten years.
2. A Bipartisan Spree: Lifting Spending Caps
Despite the Republican Party’s traditional stance on fiscal conservatism, the administration presided over a substantial rise in discretionary spending. Through the Bipartisan Budget Acts of 2018 and 2019, Congress and the White House agreed to lift caps on both military and non-defense spending. This move alone contributed an estimated $1.6 trillion to the debt over a decade, funding increases across numerous agencies and programs.
3. The COVID-19 Shockwave
The single largest fiscal event occurred in the final year of the term: the COVID-19 pandemic. The resulting economic shutdown and health crisis necessitated massive relief efforts, led by the CARES Act. These bipartisan emergency measures, including direct payments to Americans, aid to businesses, and funding for public health, accounted for nearly $4 trillion in new ten-year borrowing—making it the dominant factor in the administration's spending profile