U.S. National Debt Reaches $38 Trillion, Driven by Deficits and Rising Interest Payments

The U.S. national debt has reached an unprecedented high of $38 trillion as of mid-October 2025, signifying a significant shift in the nation’s fiscal landscape. This substantial increase is attributed to chronic budget deficits, rising government spending, and escalating interest payments. 2025 saw a federal deficit of $1.76 trillion, a slight decrease from the previous year’s $1.82 trillion. Despite this reduction, the deficit remains alarmingly high, reflecting ongoing fiscal challenges.