U.S. — The U.S. national debt held by the public has reached $31.68 trillion, exceeding 100% of the nation’s gross domestic product, according to federal data. This milestone underscores mounting fiscal pressures as interest costs consume an increasing share of federal revenue, with projections indicating that more than half of individual income tax collections could go toward servicing the debt within the next decade.

The Congressional Budget Office (CBO) reported that net interest on public debt for the fiscal year totaled $857 billion. This sum exceeds by $20 billion the combined outlays for the Departments of Defense, Commerce, Homeland Security, Education, the Environmental Protection Agency, the Small Business Administration, and the U.S. Coronavirus Refundable Credits scheme. In Fiscal Year 2025, 36.5% of all individual income taxes collected were used solely to pay interest on the national debt.

Looking ahead, the CBO projects that by 2036, 50.6% of individual income tax revenue will be allocated to debt service. Over a 30-year horizon, the agency forecasts that debt held by the public will climb to 175% of GDP if current fiscal policies remain unchanged. These projections highlight a trajectory in which interest obligations increasingly crowd out other federal priorities.

A Peter G. Peterson Foundation report states that rising interest costs crowd out resources for public investments and deter private investment. An EY QUEST analysis commissioned by the foundation quantifies the economic impact, finding that rising debt will reduce U.S. employment by 1.2 million jobs by 2035 compared to a scenario in which debt is stabilized. The same analysis projects job losses of 2.7 million by 2055 and 3.6 million by 2075.

The EY QUEST analysis also estimates that annual take-home pay will decline relative to a stabilized-debt baseline—falling by 0.6% by 2035, 3% by 2055, and 5.3% by 2075. These figures illustrate how mounting debt could affect households directly through reduced earnings potential over time.

Critics of current fiscal policy have voiced alarm. JPMorgan Chase CEO Jamie Dimon said in April: "I just think maturity should say you should deal with it as opposed to let it happen." Citadel CEO Ken Griffin wrote in his 2023 letter to shareholders: "It is irresponsible for the U.S. government to incur a deficit of 6.4% when unemployment is hovering around 3.75%. We must stop borrowing at the expense of future generations." Although Griffin’s remarks reflect economic conditions from 2023, they align with current concerns about deficit spending relatively low unemployment.

The current debt level marks a dramatic increase from past decades. In 1979, federal debt held by the public stood at $640 billion. That same year, 39 states filed applications for a constitutional convention limited to proposing a fiscal responsibility amendment. Under Article V of the U.S. Constitution, Congress is required to call a convention to consider amendments if applications are received from two-thirds of the states, though the 1979 effort fell short of that threshold.

Congress has attempted fiscal discipline through several legislative measures. It enacted the Gramm-Rudman-Hollings Balanced Budget and Emergency Deficit Control Act of 1985, which set declining deficit targets. However, in 1987, Congress postponed implementation of the act for two years, and by 1990, it abandoned the law entirely.

Later that year, Congress passed the Budget Enforcement Act of 1990, which introduced spending caps and pay-as-you-go rules. More recently, the Budget Control Act of 2011 established new spending limits and created mechanisms for automatic sequestration, though its long-term impact on debt accumulation has been limited.

The national debt’s size and growth trajectory carry implications for economic stability, government flexibility, and household finances. With interest costs already surpassing combined outlays for multiple major federal departments, the burden on taxpayers is growing. The CBO’s projection that debt will reach 175% of GDP in 30 years suggests a future in which fiscal policy options narrow substantially, potentially limiting responses to crises or investments in infrastructure, education, and defense.

Analyses from nonpartisan institutions like the CBO and the Peter G. Peterson Foundation underscore the long-term economic costs of inaction, including job losses and reduced wages. The involvement of business leaders like Dimon and Griffin, alongside past and present policymakers, signals broad concern across sectors about the sustainability of current fiscal practices.