US adds $1 trillion to national debt in less than a year
The U.S. national debt has increased by $1 trillion in less than a year, reaching a record $37 trillion, according to the Treasury Department. This marks the highest deficit level in the countryS history, surpassing previous records of $36 trillion set in November 2024 and $35 trillion in July 2024. The rapid rise in debt is largely attributed to heightened government spending, especially the financial relief efforts during the COVID-19 pandemic, which cost over $5 trillion.these included major stimulus packages such as the CARES Act and the American Rescue Plan.The debt has reached this level much earlier than pre-pandemic forecasts expected, which had projected surpassing $37 trillion after fiscal 2030.Experts warn that the U.S. is adding to its national debt at an accelerating pace-about $1 trillion every five months-leading to concerns about America’s long-term fiscal sustainability. The current debt exceeds the combined economies of the Eurozone and China, emphasizing the scale of the fiscal challenge ahead.
US adds $1 trillion to national debt in less than a year
The Treasury Department reported on Tuesday that the U.S. national debt increased by $1 trillion in less than a year to a record level of $37 trillion.
It is reportedly the highest deficit level in the country’s history. The previous record was $36 trillion, set in November 2024, and the $35 trillion mark in July 2024. The deficit was $37,004,817,625,842.56 as of Tuesday afternoon, according to the Treasury Department.
The Treasury Department data show that the government continues to spend money at dangerously high levels. Even more concerning is that the debt hit the $37 trillion mark years before it was expected, at least based on pre-COVID-19 assessments.
Previously, it was estimated that the deficit would not surpass $37 trillion until after fiscal 2030, the Associated Press reported. However, this total was based on estimations by the Congressional Budget Office in January 2020, weeks before the pandemic began.
Government spending during the pandemic significantly increased the U.S. national debt. According to the Tax Policy Center, financial relief initiatives by the government cost over $5 trillion. This included the “Coronavirus Aid, Relief, and Economic Security Act of March 2020, with a total cost of $2.0 trillion; the Consolidated Appropriations Act of December 2020, with a cost of $868 billion; and the American Rescue Plan Act of March 2021, with a cost of $1.9 trillion.”
With the most recent data showing the debt surpassing $37 trillion this year, Fox Business projects that the U.S. national debt will “reach 99% of the size of the U.S. gross domestic product.” Moreover, with the passage of the One Big Beautiful Bill Act, the CBO estimated it would add $3.4 trillion to the national debt within the next 10 years.
“We are now adding a trillion more to the national debt every 5 months,” said Michael Peterson, CEO of the Peter G. Peterson Foundation, a think tank dedicated to “putting America on a sustainable fiscal path.”
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“That’s more than twice as fast as the average rate over the last 25 years,” Peterson added.
“The national debt soaring past $37 trillion sends yet another clear message about America’s unsustainable fiscal path,” Peterson said. “Our national debt is now greater than the economies of the entire Eurozone and China, combined.”
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