US National Debt Hits Record $39.5 Trillion, GAO Warns of Deteriorating Outlook

The total US federal debt has reached a new record of $39.5 trillion.

This marks an increase of approximately $3.2 trillion over the past year, according to the Treasury's Debt to the Penny database. Capital markets analyst Adam Kobeissi notes that since 2020, the debt has surged by $16.3 trillion, averaging a $2.5 trillion annual increase.

The U.S. Government Accountability Office (GAO) has issued a stark warning, urging immediate action. The GAO states the federal government's fiscal path is unsustainable, posing serious economic and national security challenges.

Under current policies, the GAO projects debt held by the public will reach 106% of GDP by 2029 and could grow to 251% of GDP by 2056. Interest spending on the debt already exceeds defense outlays and is rising, creating risks like higher borrowing costs and reduced government flexibility in future crises.