As of June 20, 2025, the total U.S. federal debt hit a record $37 trillion, now exceeding 120% of GDP—driven by rising interest costs and large deficits .

According to the Senate Joint Economic Committee, as of June 4, 2025, total gross national debt stood around $36.21 trillion, with debt held by the public and intragovernmental holdings making up this amount .

This recent spike reflects borrowing for pandemic relief, tax cuts, and expanded government spending. Annual interest payments alone now exceed $1.1 trillion, more than spending on Medicare or defense .

🧭 What This Means & Why It's Important

1. Debt-to-GDP at ~120%: The U.S. owes more than its entire economic output for the year—a high and potentially risky level .

2. Mounting interest burden: With interest costs surpassing $1 trillion annually, servicing the debt now rivals major federal programs .

3. Credit pressure rising: Foreign reserves (e.g., Taiwan’s) and bond investors are growing wary of U.S. debt's long-term sustainability .

📈 Outlook & Risks

New legislation like the “One Big Beautiful Bill” may add another $2.8 trillion to deficits over the next decade .

Analysts are expecting higher bond issuance and yields as borrowing increases, potentially for most of 2025 .

Some policymakers propose regulatory changes (e.g., SLR adjustments) to boost demand for Treasuries, though structural reforms are still needed .

In Summary

The U.S. national debt has reached an all-time high (~$37 trillion), incurring over $1 trillion annually in interest. With debt now exceeding GDP, concerns are rising among economists and investors about fiscal stability. Legislative actions in progress could add further to the burden, likely pushing debt service costs higher and increasing pressure on markets.#USNationalDebt