Overview
- Federal debt has reached about $38 trillion, equal to roughly 120%–125% of GDP, according to analyses released this week.
- Annual net interest costs are near $1 trillion and now exceed U.S. defense spending.
- Richard Haass characterizes the situation as a national security crisis, outlining a slow‑motion decline risk and a potential market “cliff” from lost confidence or geopolitical coercion.
- Experts warn debt service is crowding out domestic priorities such as cybersecurity and public health and constraining U.S. strategic choices.
- Analysts say today’s polarized politics and protected entitlements rule out past playbooks, pointing instead to modest tax increases, measured entitlement changes, restored IRS capacity, and a bipartisan commission to guide action.