{"id":2652070,"date":"2026-08-31T06:51:01","date_gmt":"2026-08-31T10:51:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/grim-40-trillion-debt-milestone-raises-questions-about-fiscal-commission\/"},"modified":"2026-08-31T06:55:51","modified_gmt":"2026-08-31T10:55:51","slug":"grim-40-trillion-debt-milestone-raises-questions-about-fiscal-commission","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/grim-40-trillion-debt-milestone-raises-questions-about-fiscal-commission\/","title":{"rendered":"Grim $40 trillion debt milestone raises questions about fiscal commission"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgrim-40-trillion-debt-milestone-raises-questions-about-fiscal-commission%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2652070&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses the rising concerns over the U.S. national debt, which has surpassed $40 trillion, sparking renewed calls for bipartisan efforts such as a fiscal commission to address fiscal challenges. With Social Security and Medicare trust funds nearing exhaustion and increasing interest costs, experts warn of serious implications, including potential financial crises and economic instability.While some officials suggest growth strategies to manage debt,most economists deem these approaches unrealistic. Several past commissions have had mixed success: while the BRAC commission successfully closed military bases,the Greenspan Social Security Commission managed to reassure markets but didn&#8217;t fully resolve underlying issues,and the Simpson-Bowles commission&#8217;s comprehensive deficit reduction plan was never enacted. Experts emphasize the importance of incremental reforms, bipartisan cooperation, and political cover to implement necessary but ofen unpopular fiscal adjustments, including both spending cuts and tax increases. the article highlights the urgency of reforming fiscal policy to prevent a potential financial crisis and stabilize the economy.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">The growth of the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/national-debt\/\" data-type=\"post_tag\" data-id=\"1304\">national debt<\/a> beyond<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4686809\/national-debt-40-trillion-grim-milestone\/\"> the $40 trillion<\/a> mark and the increase in yields on long-term Treasuries have reignited talks of a <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/bipartisanship\/\" data-type=\"post_tag\" data-id=\"1709\">bipartisan<\/a> fiscal commission.<\/p>\n<p class=\"wp-block-paragraph\">Fiscal hawks are urging action. In addition to the towering $40 trillion debt and higher interest costs, the trust funds for  <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/social-security\/\" data-type=\"post_tag\" data-id=\"796\">Social Security<\/a> and <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/medicare\/\" data-type=\"post_tag\" data-id=\"797\">Medicare<\/a> face exhaustion in the coming years.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/4704848\/40-trillion-debt-milestone-raises-questions-fiscal-commission-financial-crisis\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Grim $40 trillion debt milestone raises questions about fiscal commission<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/4705727\/trump-posts-video-of-kharg-island-being-blown-to-smithereens\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Trump posts video of \u2018Kharg Island being blown to smithereens\u2019<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/4705707\/grand-canyon-flash-flood-1-dead-and-several-missing\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Grand Canyon flash flood leaves 1 dead and several missing or unaccounted for, park service says<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4701923\/fiscal-hawks-skeptical-bessent-claim-grow-40-trillion-debt\/\"><strong>FISCAL HAWKS SKEPTICAL OF BESSENT\u2019S CLAIM THAT US CAN \u2018GROW OUR WAY OUT\u2019 OF $40 TRILLION DEBT<\/strong><\/a><\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">Hard decisions need to be made, and some experts think the best way to do so would be through some form of bipartisan fiscal commission, which would give lawmakers some political cover while showing markets and investors that the United States is serious about righting its fiscal ship.<\/p>\n<p class=\"wp-block-paragraph\">Calls for some sort of bipartisan solution also come as Treasury Secretary Scott Bessent has said the country can simply \u201cgrow our way out\u201d of the debt, a prospect that most economists argue is not feasible.<\/p>\n<h2 id=\"h-the-stakes\" class=\"wp-block-heading\">The stakes<\/h2>\n<p class=\"wp-block-paragraph\">The stakes are high, which is why solutions like a fiscal commission are important to consider, according to budget experts.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The debt first crossed the $1 trillion mark in 1981, but lawmakers of both parties have done little to reduce debt and deficits since the temporary run of balanced budgets from fiscal 1998 through fiscal 2001.<\/p>\n<p class=\"wp-block-paragraph\">This month, the Treasury Department <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.crfb.org\/press-releases\/treasury-confirms-18-trillion-deficit-first-10-months-fy-2026\">confirmed<\/a> a $1.8 trillion deficit in the first 10 months of fiscal 2026.<\/p>\n<p class=\"wp-block-paragraph\">In February, the Congressional Budget Office projected that federal debt held by the public would reach 101% of GDP this year. By 2030, debt will exceed 108% of GDP, surpassing the all-time high during World War II. The CBO said debt is projected to be 175% of GDP by 2056.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">In its <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.cbo.gov\/publication\/62105\">report<\/a>, the CBO warned of \u201cfar-reaching implications\u201d if debt continues to grow faster than GDP, including the risk of a financial crisis.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThe risk of a fiscal crisis \u2014 that is, a situation in which investors lose confidence in the value of the U.S. government\u2019s debt \u2014 would increase,\u201d the report reads. \u201cSuch a crisis would cause interest rates to rise abruptly and other economic and financial disruptions to occur.\u201d<\/p>\n<p class=\"wp-block-paragraph\">And, in the worst-case scenario, a fiscal crisis could throw the economy into disarray, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/premium\/4693813\/budget-red-ink-threatens-spike-inflation-unemployment\/\">spiking unemployment and exploding inflation<\/a>.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<h2 id=\"h-what-could-a-fiscal-commission-do-nbsp-nbsp\" class=\"wp-block-heading\">What could a fiscal commission do?  <\/h2>\n<p class=\"wp-block-paragraph\">The form of a fiscal commission is open to debate. But it would likely be bicameral and bipartisan, and could also include outside experts who would help give recommendations.<\/p>\n<p class=\"wp-block-paragraph\">Most importantly, the commission could provide political cover for lawmakers who would be forced to vote for tax hikes or politically damaging spending cuts.<\/p>\n<p class=\"wp-block-paragraph\">\u201cI think it\u2019s a fair point that given the political realities, a fiscal commission seems like the best path to move forward,\u201d Maya MacGuineas, president of the Committee for a Responsible Federal Budget, told the <em>Washington Examiner<\/em>.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cIn that we know that the real solutions are challenging and difficult, and a fiscal commission provides a chance for members to actually get to know each other on the issue,\u201d she said. \u201cIt gives them a chance to become more educated and build expertise on the issue.\u201d<\/p>\n<p class=\"wp-block-paragraph\">But she emphasized the political cover it gives. A lawmaker who backed the reforms put forward by the commission could tell voters that they would have preferred to do it differently, but voted in favor of the overall legislation for the good of the country.<\/p>\n<p class=\"wp-block-paragraph\">Many argue that, to address the overall debt problem, a fiscal commission would have to not only propose politically unpopular spending cuts but also would have to put forward tax increases.<\/p>\n<p class=\"wp-block-paragraph\">Shai Akabas, the vice president of economic policy at the Bipartisan Policy Center, said that in an ideal world, Congress would operate under regular order, meeting the moment to develop solutions that would fix fiscal problems.<\/p>\n<p class=\"wp-block-paragraph\">\u201cBut we\u2019ve been waiting for that to happen for about a quarter century now and haven\u2019t seen progress,\u201d Akabas told the <em>Washington Examiner<\/em>. \u201cSo we do need to think about alternative options, alternative methods.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Ryan Young, an economist at the Competitive Enterprise Institute, highlighted the level of political polarization in Washington, which endangers bipartisan efforts to lower the debt and deficits.<\/p>\n<p class=\"wp-block-paragraph\">\u201cIn private, I think just about every congressman understands the gravity of the situation: in public, none of them will act on it,\u201d Young said. \u201cThe Republicans, because they don\u2019t want to go against the administration, and the Democrats, because \u2014 at least right now \u2014 they don\u2019t want to give anything that might look like a win to the Republicans.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Still, there is some skepticism about whether a bipartisan fiscal commission would actually end up producing results.<\/p>\n<p class=\"wp-block-paragraph\">Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University, told the <em>Washington Examiner<\/em> that, at the very least, the formation of a commission would signal \u201cthat something absolutely needs to be done,\u201d but she has mixed feelings about whether it would succeed.<\/p>\n<p class=\"wp-block-paragraph\">She said that the lack of involvement by the entire Congress in regular order could backfire.<\/p>\n<p class=\"wp-block-paragraph\">\u201cBasically, that if they\u2019re going to be getting the blame for passing the reforms, they\u2019d rather actually really be engaged in the solution, right, rather than taking on what a commission has decided,\u201d de Rugy said.<\/p>\n<p class=\"wp-block-paragraph\">She also pointed out the sheer scale of the issues at play, noting that any realistic proposal would likely have to address spending through Social Security and Medicare, both popular programs.<\/p>\n<p class=\"wp-block-paragraph\">Akabas also said that a better way to proceed would be to work on these issues incrementally, taking several bites from the apple.<\/p>\n<p class=\"wp-block-paragraph\">\u201cWhether it\u2019s the whole debt problem, whether it\u2019s the 75-year solvency of Social Security problem, we can look at incremental solutions that will improve the situation, and that\u2019s a much more realistic perspective to have in terms of how Congress often deals with these issues,\u201d he said.<\/p>\n<p class=\"wp-block-paragraph\">\u201cSo we need to be looking to make progress, not necessarily to solve the entire thing in one fell swoop,\u201d Akabas said.<\/p>\n<p class=\"wp-block-paragraph\">Still, former Rep. Carolyn Bourdeaux, who is now the executive director of the Concord Coalition, which focuses on balancing the budget, told the <em>Washington Examiner<\/em> that just taking the step forward with forming a commission would show that the Trump administration is at least taking the problem seriously.<\/p>\n<p class=\"wp-block-paragraph\">\u201cI would love to see a series of plans like that, that the president starts to put on the table and starts to close the gap,\u201d she said. \u201cAnd I think that would definitely help reassure the bond market that there\u2019s actually going to be a push to try to resolve the problem.\u201d<\/p>\n<h2 id=\"h-mixed-past-results\" class=\"wp-block-heading\">Mixed past results<\/h2>\n<p class=\"wp-block-paragraph\">Past commissions have had mixed results.<\/p>\n<p class=\"wp-block-paragraph\">The Base Realignment and Closure, or BRAC, commission, was one example of a success for proponents of a fiscal commission.<\/p>\n<p class=\"wp-block-paragraph\">In that case, the U.S. needed to close dozens of military installations across the country in the wake of the Cold War. But individual lawmakers had incentives for keeping bases in their districts, so the task of which bases would be closed or consolidated was left to a commission.<\/p>\n<p class=\"wp-block-paragraph\">The BRAC commission would make a list, and Congress could not decide to tick individual bases off the package. Ultimately, more than 350 military installations were closed or consolidated.<\/p>\n<p class=\"wp-block-paragraph\">\u201cThat gave the congressmen who did have to close bases in their district some political cover, so they could do the right thing,\u201d Young said. \u201cSo everyone knew what the right thing to do was, they just didn\u2019t have the incentive to do it.\u201d<\/p>\n<p class=\"wp-block-paragraph\">The National Commission on Social Security Reform, dubbed the Greenspan Commission after its chair, Alan Greenspan, was a bipartisan commission formed in the early 1980s to make tough choices as Social Security was facing an imminent financing crisis.<\/p>\n<p class=\"wp-block-paragraph\">Congress ultimately accepted and enacted the commission\u2019s recommendations, which kept Social Security afloat.<\/p>\n<p class=\"wp-block-paragraph\">\u201cIt was successful in the sense that it signaled to investors that Congress was somewhat committed to some fiscal backing behind the commitment it was making for Social Security,\u201d de Rugy said, but she pointed out that it wasn\u2019t successful in solving all of the problems that the entitlement program had and merely kicked the can down the road.<\/p>\n<p class=\"wp-block-paragraph\">A failure was the National Commission on Fiscal Responsibility and Reform, known as the Simpson-Bowles Commission, which was formed in 2010 and designed to reduce the deficit.<\/p>\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4704071\/kevin-warsh-inflation-federal-reserve-main-focus\/\"><strong>\u2018WE HAVE WORK TO DO\u2019: WARSH SAYS INFLATION IS FED\u2019S MAIN FOCUS<\/strong><\/a><\/p>\n<p class=\"wp-block-paragraph\">The bipartisan commission came up with $4 trillion in deficit reduction through spending cuts and through increasing revenues. But Congress never enacted the legislation.<\/p>\n<p class=\"wp-block-paragraph\">Akabas said the commission was successful in that it drew attention to the issues at hand, but because it was such a \u201cgrand bargain\u201d of recommendations, he said, it included too many provisions that lawmakers on the Left and Right didn\u2019t like.<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Debt surpasses $40T, sparking calls for bipartisan fiscal action<\/p>\n","protected":false},"author":3360,"featured_media":2652071,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP16272861325519.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[51942,38510,50650,43698],"class_list":["post-2652070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-economic-outlook","tag-fiscal-policy","tag-government-finance","tag-national-debt"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP16272861325519.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2652070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3360"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2652070"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2652070\/revisions"}],"predecessor-version":[{"id":2652074,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2652070\/revisions\/2652074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2652071"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2652070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2652070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2652070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}