The U.S. federal debt has surged past $36.2 trillion as of early June 2025, now hovering at about 122% of GDP, the highest ratio outside major wartime periods. Roughly $11 trillion—nearly one-third of this debt—will need refinancing over the coming year, significantly raising costs amid rising interest rates. Interest payments alone are projected to top $579 billion in 2025, making debt servicing the second-largest federal expenditure after Social Security. Economists warn this unchecked trajectory may erode fiscal flexibility, burden future budgets, and undermine confidence in U.S. Treasury securities.
