Historic Milestone Reached: U.S. National Debtexceeds $37 trillion for the first time ever
The U.S. national debt continues to be a significant fiscal challenge, with interest costs on the debt now exceeding tariff revenue. According to the publication "Global Logistics", the U.S. national debt is expected to increase by $23.9 trillion over the next decade.
The federal budget deficit has widened, despite an influx of tariff revenue. As of early 2025, the national debt was approximately $36 trillion, growing at a rapid rate of about $100,000 per second. The federal budget in fiscal year 2024 reflected a $2.04 trillion deficit, with total spending outstripping revenue by over 6.9% of GDP.
Financial analysts express concerns about the sustainability of this debt level. The ongoing gap between federal revenue and expenditures means the government must continue borrowing to meet its obligations. Political difficulties in addressing the national debt, as its consequences are largely deferred to future taxpayers and economic conditions, complicate bipartisan agreement on necessary fiscal reforms.
Key concerns highlighted by analysts include the combination of spending cuts and tax reductions in recent budget proposals, which could paradoxically increase the deficit and require further raising the debt limit. The lack of a balanced federal budget since 2001 signals persistent fiscal challenges that underlie the debt accumulation trend.
The One Big Beautiful Bill Act (OBBBA), signed by President Donald Trump in mid-2025, introduced tax reforms and expansions in healthcare provisions, but its direct impact on reversing or significantly altering the trajectory of the national debt has not been explicitly quantified. The complexity of the legislation and staged rollout of tax provisions mean the full fiscal implications will unfold over time.
The OBBBA also raised the debt limit by $5 trillion, the first time it was raised through budget reconciliation. However, financial experts like Ray Dalio have cautioned that unchecked deficit spending could lead to a severe fiscal crisis. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warned about a lack of commitment to addressing the country's unsustainable fiscal trajectory.
As the U.S. federal government's gross national debt surpassed $37 trillion last week, it is clear that addressing the growing national debt remains a pressing issue for the U.S. economy.
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