The US national debt exceeds a grim milestone for the first time in its history
The U.S. government's gross national debt surpassed $38 trillion on Wednesday, just two months after reaching $37 trillion, which comes as the government continues to deal with the federal government shutdown.
It's the fastest one-year debt accumulation of $1 trillion outside of emergency government spending during the COVID-19 pandemic, and has raised concerns about economic stability, borrowing costs and long-term impacts on U.S. citizens.
Why it matters
The size of the national debt and the speed at which it is accumulating raises pressing questions about America's fiscal health and the sustainability of current federal policies, as the government battles internal political gridlock during the second-longest government shutdown in U.S. history. For Americans, the impact of this growing debt could affect mortgage and auto borrowing costs, wages and the cost of living.
Lawmakers and tax experts are debating the need for reforms as the debt trajectory continues to accelerate at record speed.
What you need to know
Treasury data shows that the national debt has continued to rise, from $34 trillion in January 2024 to $35 trillion in July 2024, then from $36 trillion in November 2024 to $37 trillion in August 2025, and now from $38 trillion in October 2025, just two months later. The Joint Economic Committee calculated that the debt has increased by nearly $69,714 per second over the past year.
Treasury Secretary Scott Bessent said the cumulative deficit from April to September was $468 billion, the lowest since 2019, and said the Trump administration had reduced the deficit by $350 billion from the previous year, thanks to lower spending and increased revenue.
The deficit measures how much more the government spends than it collects in a single year, while the national debt is the total amount the government owes after years of accumulated deficits.
What people say
White House spokesperson Kush Desai said in a statement: "In his first eight months in office, President Trump reduced the deficit by $350 billion compared to the same period in 2024 by cutting spending and increasing revenue.
Treasury Secretary Scott Bessent said in a message on X Wednesday: "Today, President Trump is putting America's financial system on solid footing. Revenues are soaring and public spending is under control. Democrats believe they can undo the important progress the president has made by shutting down the government.
Maya MacGuineas, chair of the Committee for a Responsible Federal Budget, said: "The reality is that we are becoming hopelessly numb to our own dysfunction. We fail to pass budgets, we miss deadlines, we ignore budget guarantees, and we haggle over fractions of a budget while leaving key drivers intact. leaders on how to avoid such a disaster.
Michael Peterson, president and CEO of the nonpartisan Peter G. Peterson Foundation, said: "Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are failing to meet their basic budget obligations. Along with increasing debt, you get higher interest costs, which are now the fastest growing part of the budget. We spent $4 trillion on interest over the last decade, but we will spend $14 trillion over the next ten years. Interest costs crowd out important public and private investments in our future, harming the economy of every American.
What happens next
Policymakers will face increasing pressure to design long-term fiscal reforms, as interest payments on debt are likely to take precedence over essential public investments. The debate is expected to intensify as lawmakers weigh the need to control spending against the challenges of funding existing commitments such as Social Security, Medicare and defense.
The circumstances surrounding the debt ceiling being reached and the broader question of fiscal sustainability are likely to remain dominant questions in the months ahead, with renewed urgency as the economic implications become more acute.
This article contains reporting from the Associated Press
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