#USNationalDebt Here’s the current situation on the U.S. national debt:

📊 How Big Is the U.S. Debt?

Total gross federal debt is now about $36.2 trillion as of June 2025.

This includes $27.5 trillion owed to the public (Treasuries held by investors) and the remainder (~$8.7 trillion) in intragovernmental debt, such as Social Security trust funds.

📈 Debt vs. GDP

Federal debt has reached approximately 124% of GDP as of late 2024 — the highest peacetime level since World War II .

💸 Interest Costs

FY 2025 interest payments on the debt are projected to be roughly $776 billion, accounting for about 16% of total federal spending .

With rising interest rates, this burden is growing—and may soon become the second-largest expenditure after Social Security .

📉 Deficit & Debt Growth

The FY 2025 deficit is running at roughly $710 billion, and the U.S. is borrowing nearly $1 trillion per year to cover interest alone .

Major legislative proposals, such as the "One Big Beautiful Bill", could add another $2–3 trillion to debt over the next decade, pushing the debt-to-GDP ratio even higher.

🌍 Why It Matters

Economic strain: Rising interest costs limit the government's ability to fund investments in infrastructure, education, and social programs.

Credit impact: Moody’s downgraded U.S. credit rating to Aa1 in May 2025, citing high debt and policy risks.

Investor caution: Surging issuance of Treasury debt—nearly $815 billion in Q1 2025—has spooked markets, raising concerns over confidence in long-term U.S. borrowing.

🔮 Outlook & Risks

Fiscal trajectory: Without policy reforms, public debt is projected to climb above 130% of GDP by 2034–35.

Interest burden: As rates rise, servicing debt could cost over $1 trillion annually within a decade.

Debt ceiling standoffs: Recurring political battles risk delay in borrowing authority—potentially triggering a technical default with global market fallout.

Policy debates: Calls range from spending cuts and targeted tax hikes to growing the economy via immigration