The US government is planning to retire $10.7 trillion of its $18.6 trillion in federal debt by 2022, and it will use that money to pay down its outstanding American debt.
The US Treasury announced the plan on Tuesday and it is expected to be formally announced on Wednesday.
It is also expected to create jobs in the process.
The announcement follows months of public debate about the cost of the US debt.
At the end of last year, US Treasury Secretary Jacob Lew said the US had to repay $1.5 trillion of debt by the end.
However, the US has since come under criticism for failing to take advantage of the low interest rates it received during the global financial crisis to reduce its debt burden.
The Treasury has now announced that the US will retire its $10 trillion debt by 2021, and in a move that is expected both to increase the national debt and to make US businesses more competitive, the government plans to sell its assets.
The government is expected pay off $4.4 trillion of the debt through an equity sale and a reduction in corporate taxes.
The proceeds will be used to pay off US government bonds issued during the last financial crisis and to fund US government spending on programs such as roads, schools, infrastructure and infrastructure and broadband.
The bonds will be sold in the public market and the sale of these bonds will not create a new debt.
Instead, they will pay dividends to the US government as the government’s borrowing costs increase.
“The Government’s plan will create hundreds of thousands of new jobs and create billions of dollars in economic activity,” Mr Lew said in a statement.
The $1 trillion sale is the largest of its kind in US history.
The debt is the equivalent of US households borrowing over $1,000 a year.
It was announced by the Treasury in December, but the government has not yet released the amount of the sale.
In a statement, Treasury said it had decided to sell bonds issued between 2009 and 2020 because “the Treasury has a responsibility to reduce the debt”.
In a separate announcement on Tuesday, US President Barack Obama said the government would be using $2 trillion of savings to pay for infrastructure projects, including the $5 billion in infrastructure bonds that the president said he will sell this year.
The president said the sale would be a major investment in America’s future.
“We have to rebuild the country.
This is not about the next election, this is about making sure that we’re making investments in our future,” Mr Obama said.
The Obama administration has been trying to reduce debt and deficit.
It announced last month that it would borrow $3.8 trillion in 2019 to pay interest on $1 in bonds.
Mr Lew announced the sale on Tuesday in an address to the nation’s governors.
He said that the sale “will help strengthen our economic recovery, while also allowing the United States to grow our economy and create millions of jobs”.
US stocks have fallen since the announcement, as investors worry about the US national debt.
US stocks are down by more than 8 per cent this year, according to the S&P 500 index.
