WASHINGTON, D.C. — The U.S. national debt is approaching $40 trillion, a record milestone that economists warn reflects years of rising deficits, higher borrowing costs and repeated failures by both parties to confront the government’s long-term fiscal imbalance.
PBS NewsHour reported that annual interest costs on the debt now exceed $1.2 trillion, meaning the federal government spends more servicing past borrowing than it does on national defense.
The debt accelerated during major economic shocks, including the 2008-09 financial crisis and the COVID-19 pandemic, but has continued climbing even outside emergencies. Recent administrations have added to the imbalance through a combination of higher spending and tax cuts, while Congress has repeatedly avoided politically difficult changes to major programs or revenues.
The warning comes as the Congressional Budget Office projects a roughly $2.1 trillion federal deficit for fiscal 2026, about $200 billion more than it forecast earlier this year. Rising Social Security, Medicare and Medicaid spending, weaker corporate tax receipts and sharply higher interest expenses are contributing to the shortfall. (cbo.gov)
Fiscal watchdogs warn that continued borrowing could eventually mean higher taxes, deeper spending cuts or both. The risk is not that a crisis is imminent, but that delaying action makes the eventual adjustment more painful.
PBS noted that the debt is already on track to approach $50 trillion within several years if current trends continue.
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