U.S. National Debt Surges 7% to $36.58 Trillion in 2024

The U.S. national debt has reached an unprecedented high of $36.2 trillion in July 2025, driven by the recent passage of President Donald Trump's fiscal policy known as the "Big Beautiful Bill." This policy outlines substantial changes to the government's spending and fiscal priorities. Despite the intention to enact approximately $1.5 trillion in spending cuts, the expected result is an unanticipated rise in the national debt due to increasing interest expenses, as noted by the U.S. Treasury.

Under Trump's administration, legislation that could potentially add $6 trillion to the national debt in a decade received approval, with concerns rising about interest costs due to delayed spending reforms. The Deficit Tracker Report also highlights the growing deficit impacting economic stability. The immediate effects of the increased national debt are observable in the financial markets, where heightened interest payments, estimated at $892 billion for 2025, raise market concerns. The potential for lingering inflation and impacts on market liquidity are notable, especially within sectors heavily reliant on funding stability.

The record debt levels influence significant financial and economic outcomes, notably in government fiscal management and investment strategies. Increased deficits and debt potentially hinder private investments and might increase bond yields, fostering shifts within equity and crypto markets. Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) may attract investment as traditional fiat uncertainties influence sentiment. Historical precedents indicate that during periods of increased U.S. debt, risk assets have typically seen volatility. Bitcoin and decentralized finance platforms often gain traction as alternative stores of value during times of sovereign risk events. Investors and policymakers alike may expect shifts in capital flows within traditional and digital assets, especially considering crypto assets' appeal in these uncertain fiscal conditions.

The United States national debt has surged to an unprecedented high, reaching $36.58 trillion. This milestone marks a significant increase from the previous year, where the debt stood at $35.46 trillion, reflecting a 7% rise between 2023 and 2024. The debt trajectory has been on an upward spiral, with the total outstanding Treasury debt held by the public at the end of 2024 amounting to $28.2 trillion, or 98% of GDP. This figure peaked at 99% of GDP in 2020, highlighting the substantial financial burden the nation has been carrying. The escalating debt is a result of various factors, including increased government spending and the impact of economic policies such as tax cuts. The "Big and Beautiful" bill, which was formally signed, has contributed to the debt exceeding the $36 trillion threshold. This bill, along with other legislative measures, has raised the U.S. government's borrowing limit by $5 trillion, which was projected to be hit later this summer. The interest rates have also been on the rise, adding to the financial strain.

The Committee for a Responsible Federal Budget (CRFB) estimates that the debt could reach as high as $4 trillion in the near term, with a longer-term range of $15 to $31 trillion if the tax cuts remain in place. This projection underscores the potential for further financial challenges if current policies continue unabated. The national debt not only impacts the economy but also has significant implications for future generations, as the cost of servicing the debt is substantial. Currently, the debt costs the nation $1 trillion a year, a figure that is likely to increase as interest rates continue to rise. The exponential growth of the national debt raises concerns about the sustainability of the U.S. economy. The debt-to-GDP ratio, which measures the debt relative to the size of the economy, is a critical indicator of financial health. As the debt continues to climb, it becomes increasingly difficult for the government to manage its financial obligations without resorting to further borrowing or implementing austerity measures. The current trajectory suggests that without significant policy changes, the debt will continue to grow, posing risks to economic stability and future prosperity.