The U.S. government's gross national debt has reached a record $37 trillion, according to a report from the Treasury Department released on Tuesday. This milestone underscores the growing financial pressures on taxpayers and the increasing debt burden on the nation's balance sheet.

The national debt surpassed the $37 trillion mark much earlier than previously anticipated. In January 2020, the Congressional Budget Office projected that the gross federal debt would not exceed this figure until after the fiscal year 2030. However, the COVID-19 pandemic, which began in 2020, significantly accelerated borrowing as the federal government sought to stabilize the economy during widespread shutdowns. Both former President Donald Trump and President Joe Biden authorized substantial borrowing to support economic recovery efforts.

Recent government spending has further contributed to the rising debt. Earlier this year, Trump signed legislation that included tax cuts and increased spending, which is expected to add approximately $4.1 trillion to the national debt over the next decade, according to estimates from the Congressional Budget Office.

Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, commented on the implications of this borrowing. He stated, "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, emphasized Congress's role in shaping spending and revenue policies. She noted that the Republicans' tax law will lead to significant borrowing in the coming years, stating, "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 has outlined several consequences of rising government debt for American citizens. These include increased borrowing costs for mortgages and car loans, lower wages due to reduced business investment, and higher prices for goods and services.

Peterson highlighted the rapid accumulation of debt, noting that the U.S. reached $34 trillion in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024. He remarked, "We are now adding a trillion more to the national debt every five months. That’s more than twice as fast as the average rate over the last 25 years."

The Joint Economic Committee estimates that, at the current rate of growth, the national debt could increase by another trillion dollars in approximately 173 days. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, expressed hope that this new milestone would prompt policymakers to take action, stating, "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."