The U.S. national debt $37 trillion milestone has officially been crossed, setting a new record in the nation’s financial history. Recent Treasury data shows the total outstanding debt—combining public and intragovernmental holdings—has exceeded $37 trillion, equal to over 120% of the country’s GDP. Economists warn this rapid rise could have serious consequences for fiscal stability and economic growth.
How the Debt Got Here
The debt has been on a steep upward trajectory, jumping from $33.1 trillion in December 2023 to $36.56 trillion in March 2025, and now breaching the $37 trillion mark. This surge is driven by sustained budget deficits, major spending programs, tax cuts, and the lingering financial effects of pandemic relief measures.
Impact on Every American
When broken down, the debt burden equals more than $110,000 per U.S. citizen and over $320,000 per taxpayer. These figures highlight the scale of the liability each household indirectly carries.
Rising Interest Payments
Servicing the debt has become a major budget challenge. Annual interest payments now range between $700 billion and $750 billion, making it one of the largest line items in the federal budget. This cost is expected to climb as interest rates remain elevated, squeezing funds for other national priorities like healthcare, infrastructure, and defense.
Warnings from Economists
Prominent voices such as billionaire investor Ray Dalio and former IMF official Desmond Lachman caution that the U.S. is on an unsustainable path. Dalio warns of a potential “debt death spiral,” while Lachman stresses that growing deficits and higher interest rates could erode investor confidence in U.S. government bonds.
What’s Next for U.S. Fiscal Policy
Congress is currently debating measures to rein in spending and adjust revenue streams. However, the recently passed “One Big Beautiful Bill” is projected to add another $3.4 trillion in debt over the next decade, possibly pushing the debt-to-GDP ratio to 124% by 2034.
Historical Debt Trend
| Year/Date | National Debt |
|---|---|
| Dec 2023 | $33.1 trillion |
| Mar 2025 | $36.56 trillion |
| Aug 2025 | $37+ trillion |
Why It Matters Globally
The U.S. dollar remains the world’s reserve currency, and U.S. Treasury bonds are a cornerstone of global finance. A weakening fiscal position could eventually affect global markets, international borrowing costs, and geopolitical stability.
