US National Debt Surpasses $37 Trillion With $2 Trillion Deficit, $7.1 Trillion Spending; Dalio Warns of Fiscal Risks

The United States national debt surpassed $37 trillion for the first time in history in June 2025, marking a substantial increase from $23 trillion in 2019. This milestone reflects ongoing fiscal challenges, including a $2 trillion budget deficit and government spending reaching $7.1 trillion annually. Interest payments on the debt consume approximately 25% of all government revenue, with the government paying about $1 trillion annually in interest alone. The debt now amounts to over $100,000 per American, exceeding about 50 times the value of the US gold reserves.

Economic commentators and political figures have expressed concern over the sustainability of this debt level, calling for bipartisan fiscal reforms involving spending cuts and tax increases. Investor Ray Dalio emphasized that while solutions such as raising taxes and cutting spending are known, political reluctance due to voter backlash hampers effective action. The passage of recent budget bills, including the so-called "Big Beautiful Bill," is expected to accelerate debt growth, with forecasts suggesting the national debt could reach $40 trillion by the end of 2025. The debt trajectory poses significant fiscal risks, with debt levels now equivalent to 100% of the US GDP and approximately $230,000 per American family over a 10-year horizon.