America’s national debt exceeded $38.5 trillion in the first month of 2026, exceeding the level the Committee for a Responsible Federal Budget once projected around 2030.
The negative increase dates back to pandemic-era spending that flooded the economy with federal money as authorities tried to keep businesses open, workers paid and markets stable during the crisis.
Huge numbers no longer shock the system. Prices across the economy rose, and long strings of zeros began appearing everywhere from grocery bills to government ledgers.
In 2026, another item will join that list. Annual interest payments on the national debt are in the trillions of dollars, a costly reality for the federal budget.
As debt piles up, Uncle Sam’s interest costs are skyrocketing.
In 2020, the U.S. federal government paid $345 billion in interest due to the spread of the coronavirus. Six years later, that cost has nearly tripled. The Committee for a Responsible Federal Budget says this pace is the new normal.
Currently, the United States owes lenders approximately $38.4 trillion, and repaying that balance takes a large portion of federal revenue.
Elected officials across party lines continue to talk about debt reduction, and 2025 is following that familiar scenario. President Donald Trump, now back in the White House, signed “One Big Beautiful Bill” last summer.
The package, a combination of tax cuts and new spending, would cost $3.4 trillion over 10 years and strengthen Washington’s continued appetite for borrowing.
President Trump offered several ideas for dealing with the growing tab. He said tariffs could help with repayments, and proceeds from the Golden Visa program could offset some of the borrowings.
He also argued that faster economic growth will ease pressure as the debt-to-GDP ratio improves, allowing the Department of Government Efficiency, known as DOGE, to cut spending and reduce future borrowing needs.
Not everyone thinks these steps are enough. Economists do not expect any administration to cancel the debt quickly, but many expect tougher measures. White House deputy press secretary Khush Desai objected to this.
“The U.S. debt-to-GDP ratio has actually declined since President Trump took office, and it will continue to trend in the right direction as the administration’s pro-growth policies such as tax cuts, rapid deregulation, more efficient government spending, and fair trade agreements continue to take effect and the U.S. economic recovery accelerates,” Kush said.
“This is on top of the record revenue that President Trump’s tariff policies are generating for the federal government,” he added.
Tariffs and DOGE bring in cash but do little to reduce the total amount.
Warnings from key figures have grown louder in recent years. JPMorgan Chase CEO Jamie Dimon called the situation “the most predictable crisis” in history. Ray Dalio, founder of Bridgewater Associates, said this could cause an “economic heart attack.”
Federal Reserve Chairman Jerome Powell said the issue requires a “mature conversation.”
The White House pointed to achievements to date, with government costs reduced by $202 billion, according to official DOGE tracking.
This equates to $1,254.66 per taxpayer. Still, the math is still brutal. Per capita debt now stands at just over $108,000, showing how small these savings are compared to the total.
Tariffs also brought money. The Committee for a Responsible Federal Budget reported that customs revenue jumped from about $7 billion last year to about $25 billion by the end of July. Inflows are increasing, but opinions differ as to whether they are borne by consumers or foreign exporters.
According to Cryptopolitan’s calculations, $25 billion represents less than 0.07% of the national debt. Even if all of the current customs revenue were to go straight to repayments, it would still take nearly 120 years to clear the balance.
