National debt hits a record $37 trillion, years sooner than pre-pandemic projections
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The U.S. hit $34 trillion in debt in January 2024, $35 trillion in July 2024 and $36 trillion in November 2024.
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August 12, 2025
10:46 PM
Fortune
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Economy·national debtNational debt hits a record $37 trillion, years sooner than pre-pandemic jectionsBy Fatima HusseinBy The Associated PressBy Fatima HusseinBy The Associated Press Treasury Secretary Scott Bessent.AP Photo/Alex Brandon,FileThe U.S. government’s gross national debt has surpassed $37 trillion, a record number that highlights the accelerating debt on America’s balance sheet and increased cost pressures on taxpayers
The $37 trillion is found in the Treasury Department report issued Tuesday which logs the nation’s daily finances
The national debt eclipsed $37 trillion years sooner than pre-pandemic jections
The Congressional Budget Office’s January 2020 jections had gross federal debt eclipsing $37 trillion after fiscal year 2030
But the debt grew faster than expected because of a multi-year COVID-19 pandemic starting in 2020 that shut down much of the U.S. economy, where the federal government borrowed heavily under then-President Donald Trump and former President Joe Biden to stabilize the national economy and support a recovery
And now, more government spending has been apved after Trump signed into law Republicans’ tax cut and spending legislation earlier this year
The law set to add $4.1 trillion to the national debt over the next decade, according to Congressional Budget Office estimates
Chair and CEO of the Peter G
Peterson Foundation, Michael Peterson said in a statement that government borrowing puts upward pressure on interest rates, “adding costs for everyone and reducing private sector investment
Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing.” Wendy Edelberg, a senior fellow in Economic Studies at the Brookings Institution said Congress has a major role in setting in motion spending and revenue policy and the result of the Republicans’ tax law “means that we’re going to borrow a lot over the course of 2026, we’re going to borrow a lot over the course of 2027, and it’s just going to keep going.” The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things mortgages and cars, lower wages from es having less money available to invest, and more expensive goods and services
Peterson points out how the trillion-dollar milestones are “piling up at a rapid rate.” The U.S. hit $34 trillion in debt in January 2024, $35 trillion in July 2024 and $36 trillion in November 2024. “We are now adding a trillion more to the national debt every 5 months,” Peterson said. “That’s more than twice as fast as the average rate over the last 25 years.” The Joint Economic Committee estimates at the current average daily rate of growth an increase of another trillion dollars to the debt would be reached in apximately 173 days
Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement that “hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly.” Introducing the 2025 Fortune Global 500, the definitive ranking of the biggest companies in the world
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