The U.S. national debt has surpassed $35 trillion for the first time in the nation’s history, as the federal government continues to accumulate debt at an unprecedented pace.
The latest data from the Treasury Department shows that the gross national debt has reached a record-breaking $35,001,278,179,208.67.
This milestone comes just months after the U.S. eclipsed the $34 trillion threshold in early January 2024, while the $33 trillion mark was reached as recently as September 2023. In contrast, the national debt hovered around a mere $907 billion just four decades ago.
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Sobering warnings from budget experts
“This news is incredibly sobering – and incredibly unsurprising for anyone who has been closely monitoring our fiscal trajectory,” remarked Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, in a statement. “Just last month, the Congressional Budget Office warned Americans that debt held by the public is on course to reach a new all-time high share of the economy in three years. The deficit will be nearly $2 trillion this year and nearly $3 trillion in ten years.”
Lack of meaningful action to address issue
“Yet, despite all the risks and warning signs, these alarm bells seem to be falling on deaf ears. The bipartisan, deficit-reducing Fiscal Responsibility Act of last year was a commendable first step in addressing our deficit; what we need now is a serious, sustained effort to build upon that foundation. Instead, we are hearing far too much talk about new spending and tax cuts that would only exacerbate the situation, not improve it,” MacGuineas added.
Calls for responsible fiscal policy
“We are going to have to get serious about the debt, and soon. Election years cannot be an exception for trying to prevent completely foreseeable dangers – and the debt is one of the major dangers we are facing. Enough with the charade of fiscal platitudes followed by deficit-busting records. True fiscal responsibility cannot exist in a vacuum – if we want any hope of putting America back on course toward a sustainable and prosperous future, our leaders need to bridge rhetoric with action,” she said.
Debt held by public reaches record levels
The U.S. crossing the $35 trillion mark in total debt comes as the debt held by the public – a metric favored by economists that excludes debt held in intragovernmental accounts like the Social Security trust funds – is projected to reach a staggering 99 percent of the size of the U.S. gross domestic product this year.
Projections of continued debt accumulation
The nonpartisan Congressional Budget Office (CBO) has further projected that the debt held by the public will reach a record level of more than 106 percent of GDP in 2027, surpassing a nearly 80-year-old record set in 1946 when the U.S. was in the midst of the post-World War II demobilization. From there, the debt-to-GDP ratio is expected to continue its upward trajectory in the decades to come.
Factors driving widening deficits
Furthermore, federal budget deficits have widened in recent years, driven in part by the rise in interest rates, which increases the net interest costs incurred by servicing the outstanding debt. Mandatory spending programs, including Social Security and Medicare, have also exacerbated this trend, as the safety net programs face rising costs amid the aging of America’s population.
According to the latest estimate by the CBO, the federal government is projected to run a $1.9 trillion budget deficit this year.
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