'The conflict in Iran demonstrates why we need to keep our national debt at a reasonable level': think tank sees economic emergency around the corner | Fortune

"The conflict in Iran demonstrates why we need to keep our national debt at a reasonable level. Without the fiscal space to respond to emergencies and other urgent needs, we are left vulnerable. How can we prioritize our national security when we're spending more on interest payments than national defense?"

"The U.S. national debt now stands at roughly 100% of GDP—the highest level since World War II—and the Congressional Budget Office projects it will balloon to 120% of GDP by 2036. Much of that trajectory was locked in last year when President Trump signed the One Big Beautiful Bill Act, which the CBO estimates will add $4.7 trillion to deficits through 2035."

The Committee for a Responsible Federal Budget has raised concerns about the United States' fiscal vulnerability amid ongoing military conflict with Iran. With national debt at approximately 100% of GDP—the highest level since World War II—the organization warns that limited fiscal space constrains emergency response capacity. The White House may request up to $50 billion in emergency defense funding, while experts estimate a two-month conflict could add $65 billion to national debt. Congressional Budget Office projections show debt ballooning to 120% of GDP by 2036. The CRFB cautions against bundling additional spending initiatives into war funding packages, emphasizing that interest payments now exceed defense spending, undermining national security priorities.

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