The national debt – which measures what the United States owes its creditors — hit $34 trillion as of Friday afternoon, according to new data published by the Treasury Department. It is the first time ever that US debt has surpassed that number.
The historic debt level comes as Congress races to finalize critical funding bills in order to prevent a government shutdown. The national debt is expected to nearly double in size over the next three decades, according to the latest findings from the Congressional Budget Office. Furthermore, at the end of 2022, the national debt grew to about 97% of gross domestic product. Under current law, that figure is expected to skyrocket to 181% at the end of 2053.
Servicing the national debt crisis isn’t helped by the inflation battle that the US also continues to face. Multiple interest rate hikes in 2023 made living in the debt crisis more difficult for Americans. As interest rates rise, the federal government’s borrowing costs on its debt will also increase.
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Additionally, interest payments on the $34 trillion in national debt are expected to triple from nearly $475 billion in fiscal year 2022 to $1.4 trillion in 2032. By 2053, the interest payments are projected to surge to $5.4 trillion.