US National Debt Surpasses $38 Trillion Amid Mounting Fiscal Concerns
By Joseph Iyaji | Akahi News

The United States’ national debt has surged past $38 trillion, marking a new and worrying milestone in the country’s financial history as government spending continues to outpace revenue at an alarming rate.

According to the latest report from the US Department of the Treasury, the national debt stood at $38,019,813,000,000 as of Tuesday — a figure that underscores growing fears about the sustainability of America’s fiscal trajectory.

A Record-Breaking Burden on Americans

Akahi News gathered that this enormous sum translates to approximately $111,000 of debt per citizen, based on data from the Peter G. Peterson Foundation, a Washington-based think tank. To put it into perspective, the total debt now equals the combined economic output of China, India, Japan, Germany, and the United Kingdom — the world’s next five largest economies.

Just over two months ago, in mid-August, US debt crossed the $37 trillion threshold, up from $36 trillion in November 2024 and $35 trillion in July 2024, showing a dramatic rise in just over a year.

Michael A. Peterson, the Foundation’s CEO, criticised American lawmakers for failing to uphold their fiscal responsibilities.

“Adding trillion after trillion to the debt and budgeting-by-crisis is no way for a great nation like America to run its finances,” Peterson said.
“Instead of letting the debt clock tick higher and higher, lawmakers should take advantage of responsible reforms that would put our nation on a stronger path for the future.”

Credit Downgrades Highlight Growing Economic Risks

Akahi News learnt that in May 2025, credit rating giant Moody’s downgraded the US government’s credit rating from Aaa to Aa1, citing Washington’s inability to reverse years of “large annual fiscal deficits and growing interest costs.”

This move followed earlier downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011, both of which pointed to political gridlock and unsustainable spending patterns.

Financial experts have warned that these downgrades could increase borrowing costs for the federal government, businesses, and consumers — ultimately weakening the overall economy.

The Debate Over Debt Sustainability

While economists remain divided on how much debt the US can handle before triggering a financial crisis, most agree the current pace is untenable.

A 2023 analysis by the Penn Wharton Budget Model estimated that global financial markets would likely lose confidence in the US economy if debt levels exceed 200% of Gross Domestic Product (GDP). Alarmingly, the Congressional Budget Office (CBO) projects that the US could reach that level by 2047 — fuelled in part by tax cuts under former President Donald Trump’s “One Big Beautiful Bill Act.”

Economists have long warned that rising interest payments, coupled with mounting obligations in healthcare, defence, and social security, could push future generations into a deep fiscal hole.

The Road Ahead: Political Will or Fiscal Collapse?

Analysts who spoke to Akahi News stressed that without a bipartisan commitment to responsible budgeting, America could face reduced investor confidence and slower economic growth.

Calls are growing for Congress to adopt long-term spending reforms, reduce deficits, and boost productivity to stabilise the fiscal outlook. But with the upcoming election season already polarising lawmakers, major reforms appear unlikely in the short term.

As the debt clock continues to climb, one thing remains certain — the United States is heading into uncharted financial territory, and the decisions made in the next few years could define its economic stability for generations to come.

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