The U.S. government’s gross national debt has topped $37 trillion for the first time, according to new Treasury Department figures released Tuesday, marking a historic milestone that has arrived years earlier than budget forecasters once predicted.
The record, driven by pandemic-era borrowing and fresh spending measures, underscores the mounting cost pressures facing taxpayers and the federal budget.
Background
The Treasury’s daily financial report shows the national debt now exceeds $37 trillion, eclipsing earlier Congressional Budget Office (CBO) projections that had anticipated reaching the figure after fiscal year 2030. The acceleration stems largely from emergency spending during the COVID-19 pandemic, which began in 2020 and shuttered much of the economy.
Under both former President Donald Trump and President Joe Biden, the federal government borrowed heavily to stabilize markets, support workers, and fund public health measures.
Policy Drivers
The debt has climbed even faster in recent months, fueled by a Republican-backed tax cut and spending package signed by Trump earlier this year. The CBO estimates the measure will add $4.1 trillion to the debt over the next decade.
“Government borrowing puts upward pressure on interest rates, adding costs for everyone and reducing private sector investment,” Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, said in a statement. “Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing.”
Expert Warnings
Wendy Edelberg, senior fellow at the Brookings Institution, said the latest law ensures significant borrowing through at least 2027. “It’s just going to keep going,” she said.
The Government Accountability Office has warned that rising federal debt can raise borrowing costs for mortgages and car loans, lower wages as businesses invest less, and make goods and services more expensive.
Peterson noted the pace of debt growth has doubled compared to the average over the last 25 years. The U.S. hit $34 trillion in January 2024, $35 trillion in July, and $36 trillion in November. “We are now adding a trillion more to the national debt every 5 months,” he said.
Broader Context
The Joint Economic Committee estimates that at the current daily growth rate, the debt will grow by another trillion dollars in about 173 days. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, called the milestone “a wake-up call” for policymakers.
“Hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly,” MacGuineas said.
Next Steps
While experts agree the debt trajectory is unsustainable, political divisions over tax policy and spending cuts have stalled major fiscal reforms. Without legislative changes, analysts warn, the cost of servicing the debt will consume an ever-larger share of the federal budget — leaving less room for defense, social programs, and infrastructure investment.
