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It had a huge war debt. The administration's Alexander Hamilton attempted to fix this debt by having the federal government take over the state debts and then attempt to fix the debt by implimenting customs duties and excise taxes.

Also, there was a conflict as to if the U.S. should enter the war between France and Great Britain. Washington's Neutrality Act ended this conflict, although many Democratic-Republicans did not agree with the act.

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Q: What problems did the first administration face upon entering office when George Washington was President?
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