"The U.S. national debt has surged past $38 trillion, according to the U.S. Treasury Department, just two months after surpassing previous forecasts to reach $37 trillion in August. This means the federal debt rose by $1 trillion in a little over two months, which the Peter G. Peterson Foundation calculates is the fastest rate of growth outside the pandemic."
"Michael A. Peterson, CEO of the nonpartisan watchdog dedicated to fiscal sustainability, said this landmark is "the latest troubling sign that lawmakers are not meeting their basic fiscal duties." In a statement provided to Fortune, Peterson said that "if it seems like we are adding debt faster than ever, that's because we are. We passed $37 trillion just two months ago, and the pace we're on is twice as fast as the rate of growth since 2000." The foundation's analysis attributes the acceleration to a combination of deficit spending, rising interest costs, and the economic drag of the ongoing government shutdown."
"Peterson emphasized that the costs of carrying this debt are mounting rapidly. Interest payments on the national debt now total roughly $1 trillion per year, the fastest-growing category in the federal budget. Over the last decade, the government spent $4 trillion on interest, and Peterson calculated that it will balloon to $14 trillion over the next 10 years. He said that money "crowds out important public and private investments in our future.""
"The partial government shutdown, now entering its third week, is compounding those challenges. Shutdowns have historically been costly, adding $4 billion to federal expenses during the 2018-2019 closure and $2 billion in 2013, according to federal estimates. Each day of stalled government operations contributes to higher short-term costs, delayed economic activity, and postponed budgetary reforms-effectively worsening the debt problem they often stem from."
U.S. federal debt surpassed $38 trillion, increasing by $1 trillion in about two months and marking the fastest growth outside the pandemic. The acceleration is attributed to deficit spending, rising interest costs, and economic drag from a prolonged government shutdown. Annual interest payments now approach $1 trillion and represent the fastest-growing budget category. The government spent roughly $4 trillion on interest over the last decade and projections estimate $14 trillion in interest costs over the next ten years. Ongoing shutdowns add billions in short-term costs, delay economic activity, and hinder necessary budgetary reforms.
Read at Fortune
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