The U.S. national debt has exceeded $37 trillion, raising fears that the country’s sea of red ink is rising faster than expected. Here’s what you need to know about the national debt milestone:
The $37 trillion milestone
Treasury Department reports new debt record:
- U.S. national debt exceeded $37 trillion mark this week
- New mark reported by Treasury Department
- Raises fears country’s red ink rising faster than expected
- Sparks debate about whether Trump ameliorating or accelerating problem
The accelerated timeline
Debt milestone reached years ahead of projections:
- Congressional Budget Office January 2020 outlook estimated gross debt wouldn’t exceed $37 trillion until after fiscal 2030
- COVID-19 pandemic prompted aggressive government stimulus spending
- Spending occurred under first Trump administration and Biden presidency
- Current timeline shows debt growing much faster than anticipated
The Big Beautiful Bill impact
Trump’s signature legislation adds trillions to debt:
- Trump and GOP allies passed “One Big Beautiful Bill Act” this year
- Projected to add more than $4 trillion to debt over next 10 years
- “Thanks to the One Big Beautiful Bill Act, the debt just officially passed the $37 trillion mark”
- Rep. Thomas Massie of Kentucky wrote on X
The Republican opposition
Two House Republicans voted against debt-increasing bill:
- Massie was one of only two House Republicans to vote against bill in July
- Other House Republicans supported legislation despite debt impact
- Bill passed despite concerns about fiscal impact
- Opposition came from deficit-conscious Republicans
The administration’s defense
Trump allies argue debt projections discount economic growth:
- Trump and allies say debt projections discount potential economic boom from bill
- Bill extended tax cuts, increased border and military spending
- Established new eligibility requirements on Medicaid recipients
- Administration argues economic growth will offset debt increases
The tariff revenue argument
Trump says trade policies will fill budget holes:
- President says aggressive tariff policies will fill budget holes
- Tariff revenue totaled nearly $130 billion this year
- More than double what U.S. customs collected at this point last year
- Administration ramped up levies on dozens of countries
The tariff criticism
Critics say consumers bear tariff costs:
- U.S. importers and consumers bear the cost according to critics
- Revenue still represents tax on Americans
- Critics fear tariffs will drag on economic growth
- Trump declaring victory despite concerns
Trump’s tariff victory claim
President dismisses concerns on social media:
- “It has been proven, that even at this late stage, Tariffs have not caused Inflation”
- Claims tariffs caused no “other problems for America”
- Says tariffs bring “massive amounts of CASH pouring into our Treasury’s coffers”
- Trump wrote Monday on Truth Social
The debt growth rate
Fiscal monitors highlight alarming acceleration:
- Debt growing by $59,361.77 per second according to congressional monitor
- Hitting trillion-dollar milestones at fast clip
- Gross U.S. debt reached $34 trillion in January 2024
- Hit $35 trillion in July 2024 and $36 trillion in November 2024
The fiscal watchdog warnings
Budget experts call debt level wake-up call:
- “Spending and revenue are woefully out of balance”
- Maya MacGuineas, Committee for a Responsible Federal Budget president
- Imbalance “to the tune of nearly $2 trillion annually and rising”
- “Instead of addressing this imbalance, Congress keeps choosing to make things worse”
The interest cost burden
Debt service now second-largest budget item:
- Country on track to spend $1 trillion this year on interest costs alone
- “Interest is now the second-largest item in the budget”
- “Surpassing the entire defense budget as well as Medicare”
- MacGuineas provided interest cost analysis
The global comparison
Peterson Foundation CEO provides international context:
- Michael Peterson said U.S. debt now greater than economies of 20-country Eurozone and China combined
- Peter G. Peterson Foundation CEO made comparison
- Highlights massive scale of American debt burden
- Puts debt level in global economic perspective
The long-term sustainability
Government Accountability Office warns of unsustainable trajectory:
- GAO says debt unsustainable over long term
- Could have real-world impacts like higher borrowing costs
- May lead to trickle-down problems including stagnant wages and higher prices
- Agency warns of broader economic consequences
The Republican criticism
South Carolina congresswoman highlights generational burden:
- “BREAKING: National debt just hit $37 TRILLION. Not just a number but a bill our kids can’t afford to pay”
- Rep. Nancy Mace, South Carolina Republican running for governor, wrote on X
- Fellow users posted “community note” faulting her for supporting Trump bill
- Note pointed out bill expected to add to debt
Read more:
• U.S. debt surpasses $37 trillion, woefully out of balance
This article is written with the assistance of generative artificial intelligence based solely on Washington Times original reporting and wire services. For more information, please read our AI policy or contact Ann Wog, Managing Editor for Digital, at awog@washingtontimes.com
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