Historic First: U.S. National Debt Surpasses $37 Trillion—Will Trump Be Drawn In?

On August 13, the United States reached a new fiscal benchmark as federal borrowing intensified, pushing the national debt beyond $37 trillion for the first time. Treasury Department records show the total debt stood at $37,004,817,625,842.56 by Tuesday afternoon.

This rapid increase follows a series of recent milestones: the $36 trillion mark was surpassed in November, and $35 trillion was recorded just months earlier in July. In stark contrast, the debt stood at approximately $907 billion four decades ago. The current figure arrives significantly ahead of earlier projections from the Congressional Budget Office (CBO), which in January 2020 estimated that the debt would not exceed $37 trillion until sometime after fiscal year 2030.

Based on calculations from the Joint Economic Committee, the debt is growing at such a pace that another $1 trillion could be added within 173 days. As the total climbs, publicly held debt is expected to reach 99% of the nation’s gross domestic product (GDP)—a commonly used economic measure that excludes internal government obligations like the Social Security Trust Fund.
Maya MacGuineas, who leads the Committee for a Responsible Federal Budget, expressed concern over the situation, stating that this milestone should not be viewed positively. She highlighted the imbalance in the country’s fiscal framework, noting that annual interest payments are projected to reach $1 trillion. MacGuineas urged policymakers to take immediate steps to address the growing debt before more severe corrective actions become necessary.

Michael Peterson, CEO of the Peter G. Peterson Foundation, echoed these warnings, describing the breach of the $37 trillion threshold as a clear indication that the current fiscal path is unsustainable. He emphasized that while the challenge is serious, proven budgetary reforms could still stabilize the debt and help secure long-term economic health for future generations.

Looking ahead, forecasts suggest that the debt will continue to grow over the coming years, exacerbated by high interest rates that place additional pressure on federal finances. In July, Congress passed a major tax and spending bill—referred to as the “Big and Beautiful” package—which was signed into law by President Donald Trump. According to the CBO, this legislation is expected to add $4.1 trillion to the national debt over the next ten years.

In recent remarks, President Trump criticized Federal Reserve Chair Jerome Powell for delaying interest rate reductions. He argued that a three-point cut in the federal funds rate could result in $1 trillion in annual savings on interest payments.