The United States national debt has officially passed $38 trillion. According to the Treasury Department, this threshold was crossed in recent weeks, with the debt accumulating an additional $1 trillion at the fastest pace outside of the COVID-19 pandemic period.1 This rapid increase shows a persistent pattern of unchecked spending that places an unsustainable burden on American taxpayers.
Also troubling is the fact that nearly 23 cents of every dollar the federal government brings in goes toward debt service payments.
House Budget Committee Chairman Jodey Arrington has sounded the alarm on this development, stating, “America is now $38,000,000,000,000–yes, $38 trillion–in debt. To put it in perspective, that’s twice the entire economic output of the European Union, more than twenty times Great Britain’s annual budget, and a crushing $500,000 burden for every young American under 18.”2 Chairman Arrington further emphasized the stakes, describing the national debt as “the United States’ next great war,” warning that failure to address it could jeopardize America’s global leadership and the prosperity of future generations.
The pace of this debt growth is particularly concerning. The debt reached $37 trillion in August 2025, and has since ballooned by another trillion dollars in just a couple of months. Interest payments alone now exceed $1.2 trillion annually,3 representing a 158 percent increase since 2019.4 These payments provide no tangible benefits to citizens, diverting resources that could otherwise support essential services or economic growth initiatives.
Public Response
Fiscal experts have also echoed concerns. Michael Peterson, CEO of the Peter G. Peterson Foundation, described the milestone as emblematic of lawmakers’ failure to fulfill their fiscal responsibilities, noting that over the past decade, $4 trillion has been spent on interest, with projections reaching $14 trillion in the next ten years.5
Maya MacGuineas of the Committee for a Responsible Federal Budget highlighted the appalling nature of the announcement, pointing to the debt-to-GDP ratio of approximately 125 percent, which is projected to climb to 156 percent by 2055 under current policies.
Such levels are simply unsustainable, where spending consistently outpaces economic output.
How This Affects Texans
For Texas taxpayers, the implications of this mounting debt are profound and direct. As residents of one of the nation’s largest economies, Texans contribute significantly to federal revenues through taxes. However, the increasing national debt translates to higher interest obligations that crowd out federal funding for critical priorities in our State, such as infrastructure improvements, border security, and disaster relief. Moreover, the associated risks of inflation and increased borrowing costs erode the purchasing power of Texas families and businesses, and could also lead to increased state-level taxes or reduced services if federal aid diminishes, or is simply worth less.
With the average interest rate on government debt rising from 1.61 percent in 2021 to 3.36 percent in 2025, these pressures are compounding, placing a disproportionate strain on hardworking Texans who expect fiscal prudence from their elected officials.
Mitigation Efforts and The Path Forward
Efforts to mitigate the deficit, such as tariff revenues generating approximately $350 billion annually under the current administration,6 offer some relief but fall short of addressing the root causes. Without enforceable mechanisms like binding debt-to-GDP targets or comprehensive spending caps, the trajectory remains unchanged. Both political parties bear responsibility for this, as federal outlays have surged nearly 60 percent since 2019.7
The $38 trillion debt is a consequence of policy choices. It now exceeds the combined economies of major global powers and demands urgent action to reverse course.
Texans for Fiscal Responsibility urges Congress to prioritize structural reforms that promote balanced budgets and long-term sustainability. Without such measures, the burden will continue to grow, jeopardizing the financial security of current and future generations of American families.
- https://www.pbs.org/newshour/politics/u-s-hits-38-trillion-in-debt-after-the-fastest-accumulation-of-1-trillion-outside-of-the-pandemic
- https://budget.house.gov/press-release/chairman-arrington-sounds-alarm-as-national-debt-surpasses-38-trillion
- https://finance.yahoo.com/news/u-national-debt-hits-38-104933032.html
- https://budget.house.gov/press-release/chairman-arrington-sounds-alarm-as-national-debt-surpasses-38-trillion
- https://www.pbs.org/newshour/politics/u-s-hits-38-trillion-in-debt-after-the-fastest-accumulation-of-1-trillion-outside-of-the-pandemic
- https://fortune.com/2025/09/22/trumps-tariff-bringing-very-significant-revenue-national-debt-taxes/
- https://www.cbo.gov/publication/60843/html
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