US national debt reaches a record USD37 trillion, Treasury Department reports
Washington, Aug 12 (AP) The US government's gross national debt has surpassed USD37 trillion, a record number that highlights the accelerating debt on America's balance sheet and increased cost pressures on taxpayers.
The USD37 trillion update is found in the latest Treasury Department report issued Tuesday which logs the nation's daily finances.
The national debt eclipsed USD37 trillion years sooner than pre-pandemic projections. The Congressional Budget Office's January 2020 projections had gross federal debt eclipsing USD37 trillion after fiscal year 2030. But the debt grew faster than expected because of a multi-year COVID-19 pandemic starting in 2020 that shut down much of the U.S. economy, where the federal government borrowed heavily under then-President Donald Trump and former President Joe Biden to stabilise the national economy and support a recovery.
And now, more government spending has been approved after Trump signed into law Republicans' tax cut and spending legislation earlier this year. The law set to add USD4.1 trillion to the national debt over the next decade, according to Congressional Budget Office estimates.
Chair and CEO of the Peter G. Peterson Foundation, Michael Peterson said in a statement that government borrowing puts upward pressure on interest rates, 'adding costs for everyone and reducing private sector investment. Within the federal budget, the debt crowds out important priorities and creates a damaging cycle of more borrowing, more interest costs, and even more borrowing." Wendy Edelberg, a senior fellow in Economic Studies at the Brookings Institution said Congress has a major role in setting in motion spending and revenue policy and the result of the Republicans' tax law 'means that we're going to borrow a lot over the course of 2026, we're going to borrow a lot over the course of 2027, and it's just going to keep going." The Government Accountability Office outlines some of the impacts of rising government debt on Americans – including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services.
Peterson points out how the trillion-dollar milestones are 'piling up at a rapid rate." The US hit USD34 trillion in debt in January 2024, USD35 trillion in July 2024 and USD36 trillion in November 2024. 'We are now adding a trillion more to the national debt every 5 months," Peterson said. 'That's more than twice as fast as the average rate over the last 25 years." The Joint Economic Committee estimates at the current average daily rate of growth an increase of another trillion dollars to the debt would be reached in approximately 173 days.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget said in a statement that 'hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly." (AP) RHL RHL
view comments
First Published:
August 13, 2025, 03:15 IST
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Today
7 minutes ago
- India Today
US tariff impact will be temporary, private sector should step up: Chief economist
Chief Economic Advisor V Anantha Nageswaran on Wednesday said US tariffs-related challenges will dissipate in the next one or two quarters, and urged the private sector to do more as the country navigates through other longer-term attributed the growth slowdown in FY25, which saw a deceleration to 6.5 per cent from FY24's 9.2 per cent, to tight credit conditions and liquidity issues. The right agriculture policies can add 25 per cent to real GDP growth, Nageswaran the US tariffs, the CEA said it is the second and third order impacts, which will flow once sectors like gems and jewellery, shrimps and textiles have taken the first order brunt, that will be "more difficult" to tackle. The government is aware of the situation and conversations with the impacted sectors have already begun, Nageswaran said, adding that one will hear from the policymakers in the coming days and weeks, but people have to be speculation on whether US officials will visit India for trade talks later this month as reported, Nageswaran said the upcoming meet in Alaska between US President Donald Trump and his Russian counterpart Vladmir Putin is likely to influence the to spell out any details on the trade negotiations between India and the US, the academic-turned-advisor said things are very fluid at the world stage right now with relations swinging from cooperation to stalemate, and spelled out his expectation of the impact of a 50 per cent US tariff on Indian exports."I do believe that the current situation will ease out in a quarter or two. I don't think that from a long-term picture, the India impact will be that significant but in the short run, there will be some impact," he said no one can guess the exact reasons why President Donald Trump chose to slap the high tariffs on India, wondering if it's the fallout of Operation Sindoor or something even more the CEA said the focus on tariff-related issues should not blind us to more "important challenges", including the impact of artificial intelligence, reliance on one country for critical minerals, and their processing and strengthening of supply exhorted the private sector to do more "as we navigate these longer-term challenges, promising that public policy will play the facilitator's role"."Private sector also has a lot of thinking to do, given the massive strategic challenges we face in the coming years... the private sector also has to think about the long-term rather than the next quarter, which is what might have led to many of the challenges we are currently beginning to face," he said in the comments aimed at India however, did not elaborate on the subject any that the government has allocated money towards the research purposes, he said it is now for the private sector to up their investments in the Indian youth is staring at both physical and health issues arising from excess screen use, consumption of ultra-processed food, etc, which is leading to anxieties and even suicidal thoughts among people, the CEA said, seeking the private sector's help to tackle the welcomed the capital expenditure put in by the private sector in FY26 and data to be released in February next year will attest to the consumption story is "quite healthy", the CEA said, pointing to the data on UPI usage. Specifically on urban consumption, he rued that there is no proper data source to capture services consumption, and added that drawing from listed companies' earnings may also not be the right measure as consumption is moving to the unlisted overall resource mobilisation in the economy is not showing any slackening, the CEA said, asking all to look at banks credit growth, commercial paper issuances, and IPO fundraising China, Nageswaran said "we also need to understand the security dimension and look at the USD 100 billion trade deficit beyond just the number". As a solution, there is a need to diversify the sources of imports and the CEA stressed that the private sector will have a role to play naming China, he said only one country supplies critical minerals, which are essential for semiconductors, artificial intelligence tech, and added that the supply is "critically unstable"."We cannot go from crude oil import dependence to critical minerals and ladders import dependence. Understand that crude oil (sources) at least is more diversified," he said."Indian policy-makers must choose between accepting permanent strategic dependence on adversaries or committing the resources necessary for genuine support to independence," Nageswaran that AI will cause labour displacement, Nageswaran pitched for caution in AI adoption and added that "we will have to choose the areas in which we allow AI to be deployed and harnessed, and also the speed with which we do so".There is a need to create at least 80 lakh new jobs per annum in the next 10–12 years, he added.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch
Hindustan Times
37 minutes ago
- Hindustan Times
Premier League chief calls for patience as Man City legal case drags on
LONDON (AP) — The Premier League's top official called for patience Wednesday while the seismic legal case involving Manchester City drags on into another season. HT Image City was charged by the league in February 2023 with more than 100 financial breaches, including providing misleading information about its sources of income. The case was heard by an independent commission between September and December last year but no verdict has been reached. Punishment could be as extreme as expulsion from the top flight. City has always denied the charges. The issue hangs over the start of another Premier League campaign, with the 2025-26 season starting Friday. But Richard Masters, the competition's chief executive, reiterated the league has no control or say over the timings. Asked in an interview with British broadcaster Sky Sports News why the league could not hurry the process along, Masters said: 'I can't answer that specific question. All I can tell you about is the system and how it works. 'I mean, it's an independent judiciary, essentially. So once the allegations, the charge, has been put forward, they go before an independent panel, which is independently selected, and they are then in charge of the process and its timings. They hear the case, they decide the outcome, and we have no influence over that, over it or its timing. That's right from an independence point of view." Masters said 'my frustration is irrelevant.' 'I just have to wait,' he said, "and legal processes rarely take less time than you anticipated, but we have to be patient.' The Spanish league has recently approved a request for a match, between Villarreal and Barcelona, to be played in the United States in December and Masters was asked whether the Premier League had any similar desire to take a game abroad. Masters said the need has lessened. 'We did look at the '39th game' way back when, with lots of controversy. I recall that very clearly," Masters said of a controversial proposal made back in 2008 of having an extra round of matches played overseas. 'Our objective at the time, when thinking about it, was to help grow the Premier League around the world. 'And we've been able to do that through different means, through brilliant broadcast partnerships, through digital technology, investing in other areas, like the Summer Series tournament we've just had in the U.S., and now the Premier League is a genuinely global league. There are billions of people who will be tuning in over the course of the next next nine months to watch Premier League action. So we've achieved that objective by different means, that necessity has dissipated.' ___ AP soccer:
Time of India
an hour ago
- Time of India
Older US borrowers face rising student loan delinquency: How to avoid default under Trump's crackdown
The Trump administration is cracking down on unpaid student loans: Here's how it's hitting older borrowers and how they can avoid default. (AI Image) The Trump administration has intensified efforts to collect on unpaid student loans, placing older borrowers in the US at heightened risk of financial penalties. Nearly 1 in 5 student loan holders aged 50 and above are now classified as "seriously delinquent," meaning they are 90 days or more behind on their payments. According to data released by the Federal Reserve Bank of New York and reported by CNBC, around 18% of older borrowers became seriously delinquent in the second quarter of 2025. This marks a significant increase from approximately 10% in 2019. By comparison, 8% of borrowers aged 18 to 29 and 11% of those aged 30 to 39 fell into the same category during the same period. Older borrowers face growing repayment challenges Older Americans are increasingly struggling to meet their student loan obligations as the Trump administration resumes federal collection activities. Many of these borrowers either took out loans to fund their children's education or returned to school later in life but did not experience the expected financial return, as reported by CNBC. "Being delinquent on student loan debt is difficult for people who are approaching their retirement years," said Lori Trawinski, director of finance and employment at AARP, in a statement to CNBC. "People end up having to make extremely difficult choices." Risk of garnishment increases after delinquency Borrowers who fall behind on payments do not immediately face the most severe consequences. According to higher education expert Mark Kantrowitz, as quoted by CNBC, federal loan holders are considered in default after missing payments for over 270 days. For private loans, default may be declared after 120 days of non-payment. While delinquency can affect credit scores, default triggers harsher collection methods. The US Department of Education may garnish up to 15% of a borrower's disposable wages, CNBC reported. Although the department has paused garnishment of Social Security benefits since May 5, no formal regulation has been issued to prevent such actions in the future. Trawinski noted to CNBC that while wage garnishments are expected to begin later in the summer, there is still uncertainty about whether Social Security offsets will resume. Options available to avoid default Financial advisors stress the importance of exploring federal repayment plans to avoid default. Douglas Boneparth, a certified financial planner and member of the CNBC Financial Advisor Council, stated that income-driven repayment plans can "significantly lower monthly payments and prevent default," as reported by CNBC. Borrowers can use tools on to estimate payments under different plans. The Income-Based Repayment plan remains available, though recent legal and legislative changes have limited other options, according to CNBC. In addition to repayment plans, borrowers can apply for temporary relief such as forbearance or economic hardship deferment. Boneparth cautioned, as quoted by CNBC, that "requesting a temporary forbearance can buy time, but ideally, borrowers should aim for an affordable, sustainable payment plan." The Education Department continues to encourage borrowers to take proactive steps to avoid default, especially those who remain employed and may soon be subject to wage garnishment. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
