skyrocketing US national debt ascends to an unprecedented $37 trillion, according to the Treasury Department's statements.
The U.S. national debt has surpassed $37 trillion, according to the latest Treasury Department report, a record number that has significant potential impacts on the American economy and taxpayers.
The rapid growth of the national debt, which is increasing at a rate of approximately one trillion dollars every 5 months, has been accelerated by the COVID-19 pandemic and the subsequent economic stimulus measures. This growth exerts upward pressure on interest rates, increasing borrowing costs not only for the government but also for businesses and consumers.
This increased borrowing cost can reduce private sector investment and economic growth. A larger share of the federal budget must go toward interest payments on the debt, which can crowd out spending on important areas such as infrastructure, education, and social programs.
American taxpayers are ultimately responsible for servicing this debt, meaning a larger debt can translate to higher taxes or reduced government services in the future to manage fiscal sustainability. As of mid-2025, the debt was approximately 119.4% of GDP, meaning the nation owes more than a full year’s economic output, which is historically high and could reduce fiscal flexibility.
The continued growth of the national debt could create a cycle of increased borrowing, interest costs, and decreased investment in important priorities. Political brinkmanship over raising the debt ceiling risks default on obligations, which would negatively impact financial markets and result in higher interest costs.
Long-term projections show that the debt could exceed $52 trillion by 2035, exacerbating these risks if not addressed. There are ongoing discussions about reforming debt limits and fiscal policy to address the unsustainable trajectory, including proposals for fiscal commissions and responsible budgeting legislation.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, urges policymakers to take action quickly in response to the increasing national debt. The growing national debt is a concern that requires immediate attention to ensure a sustainable economic future for America.
References:
[1] Government Accountability Office. (n.d.). Potential Impacts of Rising Government Debt on Americans. Retrieved from https://www.gao.gov/products/GAO-21-376
[2] Peterson, M. (2023, February 1). The U.S. National Debt: What It Means for You. Retrieved from https://www.pgpf.org/blog/the-us-national-debt-what-it-means-for-you
[3] Congressional Budget Office. (2023, May). An Update to the 2023 Long-Term Budget Outlook. Retrieved from https://www.cbo.gov/publication/57455
[4] Edelberg, W. (2022, December 16). The Result of the Republicans' Tax Law Means That the U.S. Will Borrow a Lot Over the Course of the Next Decade. Retrieved from https://www.brookings.edu/research/the-result-of-the-republicans-tax-law-means-that-the-u-s-will-borrow-a-lot-over-the-course-of-the-next-decade/
[5] Peterson, M. (2023, February 1). The U.S. National Debt: What It Means for You. Retrieved from https://www.pgpf.org/blog/the-us-national-debt-what-it-means-for-you
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