U.S. national debt smashes record to start 2026, hits $38.5 trillion and counting

America’s national debt crossed $38.5 trillion in the opening month of 2026, pushing past a level the Committee for a Responsible Federal Budget once expected around 2030.

The negative rally traces back to pandemic-era spending that flooded the economy with federal cash as officials tried to keep businesses open, workers paid, and markets steady during the crisis.

Huge figures no longer shock the system. Prices across the economy are higher, and long strings of zeroes now show up everywhere from grocery bills to government ledgers.

In 2026, another line item joins that list. Annual interest payments on the national debt are reaching the trillion-dollar range, locking in a costly reality for the federal budget.

Uncle Sam’s interest cost is surging crazily as borrowing piles up

In 2020, as COVID spread, the US federal government paid $345 billion in interest. Six years later, that cost has nearly tripled. The Committee for a Responsible Federal Budget has described this pace as the new norm.

At this point, the United States owes lenders about $38.4 trillion, and servicing that balance now consumes a massive share of federal revenue.

Elected officials across parties keep talking about shrinking the debt, and 2025 followed that familiar script. President Donald Trump, now back in the White House, signed the “One Big Beautiful Bill” last summer.

The package combined tax cuts with new spending and carried a $3.4 trillion cost spread across ten years, reinforcing Washington’s appetite for constant borrowing.

Trump has laid out several ideas to deal with the growing tab. He has said tariffs could help pay it down and that proceeds from his golden visa program could offset some borrowing.

He has also argued that faster economic growth would ease pressure by improving the debt-to-GDP ratio and that the Department of Government Efficiency, known as DOGE, would trim spending and reduce future borrowing needs.

Not everyone sees those steps as enough. Economists do not expect any administration to reverse the debt quickly, but many expected tougher action. Kush Desai, the White House deputy press secretary, pushed back.

“America’s debt-to-GDP ratio has actually declined since President Trump took office, and as the administration’s pro-growth policies of tax cuts, rapid deregulation, more efficient government spending, and fair trade deals continue taking effect and America’s economic resurgence accelerates, that ratio will continue trending in the right direction,” Kush said.

He added, “That’s on top of the record revenue that President Trump’s tariff policies are bringing in for the federal government.”

Tariffs and DOGE deliver cash but barely dent totals

Warnings from major figures have grown louder in recent years. Jamie Dimon, JPMorgan Chase chief executive, has called the situation the “most predictable crisis” in history. Ray Dalio, founder of Bridgewater Associates, has said it could lead to an “economic heart attack.”

Jerome Powell, the Federal Reserve chair, has said the issue demands an “adult conversation.”

The White House points to results so far.DOGE’s public tracker says it has cut $202 billion from government costs.

That equals $1,254.66 per taxpayer. Even so, the math remains brutal. Debt per person now sits just over $108,000, showing how small those savings look next to the total.

Tariffs have also brought in money. The Committee for a Responsible Federal Budget reported that tariff revenue jumped from about $7 billion last year to roughly $25 billion by late July. The inflow is rising, though opinions differ on whether consumers or foreign exporters carry the burden.

Per Cryptopolitan’s calculations, $25 billion equals less than 0.07% of the national debt. If every dollar of current tariff revenue went straight toward paying it down, it would still take nearly 120 years to clear the balance.

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