US national debt tops $37 trillion for the first time

Times of Oman

2 days ago

Washington: The US national debt has exceeded $37 trillion for the first time in the country's history.
Data released by the US Treasury Department yesterday "Tuesday" showed gross national debt reaching $37.005 trillion. According to the Congressional Budget Office, federal debt could climb to $54 trillion within a decade, driven by rising healthcare costs, an aging population, and the impact of elevated interest rates, which are increasing debt service burdens.
Credit rating agencies have warned of the deteriorating fiscal outlook. In mid-2023, Fitch Ratings downgraded the US's long-term credit rating from AAA to AA+, citing worsening financial conditions and persistent political gridlock. In May 2025, Moody's followed suit, cutting its rating from Aaa to Aa1 and projecting that interest payments could surge from 9% of federal revenues today to 30% by 2035.
Federal debt has surged in recent years, fuelled by massive pandemic relief and stimulus measures under successive administrations. The Biden administration added about $4.8 trillion by September 2022, including $1.85 trillion for the American Rescue Plan and $370 billion for infrastructure projects. Under the former Trump administration, the debt grew by $7.5 trillion during his first term, with the COVID-19 crisis pushing the fiscal 2020 deficit to a record $3.1 trillion, followed by more than $2.7 trillion in 2021.
The scale of the increase is striking: four decades ago, US federal debt totalled $907 billion. Today, interest payments in the current fiscal year -- which began in October -- have already outstripped combined spending on Medicare and the defense budget.