The U.S. national debt has reached a historic milestone, exceeding $38 trillion as of October 2025. This new record comes amid growing concerns about ballooning interest costs on the federal balance sheet and persistent stalemates in Washington over fiscal policy. Leaders on the budget committee caution that lawmakers have grown numb to America’s ongoing dysfunction.

Since the federal government continues to run annual deficits, the debt has only accelerated in recent years. The current figure, tracked by the Treasury, covers a massive array of instruments: Treasury bills, notes, bonds, TIPS, and more. Interest payments themselves are now one of the government’s largest and fastest-growing budget items.

Economists and policymakers warn that unless the trend is reversed, rising interest costs could crowd out essential spending on Social Security, Medicare, and defense. Yet, with election politics and partisan divisions ruling the day, significant reforms or tax changes seem unlikely anytime soon.

For now, the markets are still betting on America’s long-term stability. But with national debt now at $38 trillion, faith in Washington’s fiscal management will increasingly depend on credible, coordinated action from both Congress and the White House.

As the world watches the U.S. navigate this unprecedented debt milestone, all eyes remain on what steps—if any—will be taken to restore fiscal discipline.