Here’s the latest on U.S. national debt:
🇺🇸 How much is it?
As of early June 2025, total U.S. federal debt stands at about $36.2 trillion (jec.senate.gov, thetimes.co.uk).
This includes both debt held by the public and intragovernmental debt.
That amounts to roughly $106,000 per person in the U.S. (pgpf.org, usafacts.org).
📈 How is it trending?
Debt has climbed rapidly over recent years—up by roughly $1 trillion per 100 days early in 2024 (en.wikipedia.org).
It recently surpassed 100% of GDP, currently hovering around 122% (aljazeera.com).
The Congressional Budget Office projects continued debt growth to 118% of GDP by 2033, and into 172–195% by 2053 if trends continue (en.wikipedia.org).
💸 Consequences & concern
Rising interest costs—estimated $579 billion in 2025, becoming the government’s second-largest expense after Social Security (en.wikipedia.org, myjournalcourier.com).
Moody’s downgraded U.S. credit to Aa1 in May 2025, citing elevated debt and fiscal risks (en.wikipedia.org).
High-profile voices, including economists, policymakers, and business leaders, warn that:
Continued large deficits could “crowd out” essential investments and strain the dollar’s standing (thetimes.co.uk, ctinsider.com).
The Federal Reserve’s holdings of U.S. debt ($4 trillion now, potentially rising to $9.9 trillion by 2035) pose systemic risks (nypost.com).
Legislative actions—such as new border/tax/energy bills—may add $2.8–$4 trillion to deficits over the next decade (politico.com).
🔍 Why it matters
As debt grows, so do interest payments—potentially choking off funding for education, infrastructure, defense, and social safety nets.
A high debt-to-GDP ratio can reduce fiscal flexibility, make the U.S. more susceptible to interest-rate hikes, and trigger higher taxes or automatic spending cuts.
Sustained borrowing at this scale risks slowing long-term economic growth, weakening global confidence in U.S. finances, and limiting tools to handle crises.
🛠️ Are there solutions?
Potential remedies include:
Fiscal discipline: cut spending and/or raise taxes.
Boost revenues: through economic growth, tax reform, or immigration expansion (usafacts.org, barrons.com).
Entitlement reforms to curb rising costs in Social Security and Medicare.
Limiting deficit-driven legislation, as recommended by the CBO.
