Sky-high US national debt climbs to an unprecedented $37 trillion mark
The United States has reached a new milestone in its national debt, surpassing $37 trillion for the first time in history. This significant increase in debt is a cause for concern for many economic experts, who warn that the country is on an unsustainable fiscal path.
Maya MacGuineas, President of the Committee for a Responsible Federal Budget (CRFB), expressed her dismay, stating that reaching $37 trillion in total debt is a moment no one in Washington can be proud of. She also noted that even when measuring debt as a share of the economy, the U.S. is headed toward record levels and on course to spend $1 trillion just on interest costs.
The rapid increase in the national debt can be attributed to policies under President Donald Trump, particularly his tax bill and tariff strategies. According to a nonpartisan Congressional Budget Office (CBO) estimate, Trump's domestic spending alone could add over $4 trillion to the debt over ten years. The so-called "megabill" and tax legislation are projected to add nearly $3.4 trillion more in deficit spending over the next decade.
However, economists and analysts view tariffs as unlikely to significantly offset the growing debt. Despite the White House suggesting that tariffs would generate revenue to help, this has not substantially curbed debt growth.
The federal government’s deficits have reached record levels recently, with the fiscal year 2025 deficit poised to be worse than the COVID-era deficits, exceeding $2 trillion if trends continue. Interest payments on the debt account for a large portion of federal revenue, reducing funds available for other expenditures.
Michael A. Peterson, CEO of the Peter G. Robinson Foundation, echoed these concerns, stating that the national debt surpassing $37 trillion sends a clear message about America's unsustainable fiscal path. He also noted that the national debt is now greater than the economies of the entire Eurozone and China, combined.
Despite these concerns, it's not too late to act, according to Peterson. He urged policymakers to reform the budget before the damage is made even worse.
In the midst of these developments, it is worth noting that a federal judge halted the Trump administration's temporary federal funding freeze. The national debt was previously $36 trillion in late November 2024.
As the national debt continues to rise, experts and policymakers alike are urging for action to address this growing concern and secure a stronger financial future for the United States.
- The $37 trillion national debt, a historic milestone, has been met with concern from economic experts, who warn that the country is on an unsustainable fiscal path.
- Maya MacGuineas, President of the Committee for a Responsible Federal Budget, expressed dismay, stating that reaching $37 trillion in total debt is a moment no one in Washington can be proud of.
- The rapid increase in the national debt can be attributed to policies under President Donald Trump, particularly his tax bill and tariff strategies, which are projected to add nearly $3.4 trillion more in deficit spending over the next decade.
- Despite the White House suggesting that tariffs would generate revenue to help, this has not substantially curbed debt growth, and economists view tariffs as unlikely to significantly offset the growing debt.
- Experts and policymakers alike are urging for action to address the growing concern over the national debt and secure a stronger financial future for the United States. Moreover, a federal judge halted the Trump administration's temporary federal funding freeze, with the national debt previously being $36 trillion in late November 2024.
