The gross national debt of the United States has surpassed $US37 trillion ($56 trillion), according to the latest Treasury Department report. This record figure highlights the accelerating accumulation of debt on the nation’s balance sheet and increased cost pressures on taxpayers. The $US37 trillion threshold was reached years ahead of pre-pandemic projections.
Congressional Budget Office projections from January 2020 estimated that gross federal debt would surpass $US37 trillion after the 2030 fiscal year. However, the debt grew at an accelerated rate due to the COVID-19 pandemic, which began in 2020 and led to widespread economic shutdowns. The federal government borrowed heavily under both the Trump and Biden administrations to stabilise the national economy and support its recovery during this period.
Further increasing the national debt is new government spending approved after Trump signed into law Republican tax cut and spending legislation earlier in the year. The Congressional Budget Office estimates that this law will add $US4.1 trillion to the national debt over the next decade.
The increasing national debt remains a significant concern for many economists, as it could potentially lead to higher interest rates, reduced government spending on other essential programs, and a weaker overall economy.
