The U.S. government has borrowed a jaw-dropping $1.15 trillion in the first five months of Fiscal Year 2025, averaging nearly $8 billion per day. This is the highest borrowing rate the nation has ever seen. The national debt has now skyrocketed to over $36 trillion, with no signs of slowing down. This explosive borrowing spree is putting unprecedented pressure on the nation’s finances.
The surge in borrowing is primarily due to the rising costs of mandatory spending programs, including Social Security, Medicare, and the ever-increasing interest payments on the national debt. In February 2025 alone, the U.S. ran a federal deficit of $307 billion, a massive $11 billion increase compared to the same time last year. With each passing month, the government’s spending outpaces its revenue, creating an unsustainable fiscal gap.
The Congressional Budget Office (CBO) is sounding alarms, projecting that annual deficits could exceed $2 trillion in the coming years if current trends persist. Meanwhile, interest payments on the debt are expected to exceed $1 trillion annually, further burdening an already strained budget. Without a drastic shift in fiscal policy, the government could be caught in a perpetual cycle of borrowing just to service its debt.
The most troubling part of all of this is that tax revenues aren’t keeping up with the skyrocketing spending. This imbalance makes it even harder for policymakers to find the right balance between fiscal responsibility and addressing economic needs. If this pattern continues, the U.S. could face significant long-term economic challenges.
Sources:
https://www.cbo.gov/publication/61172
https://finbold.com/9-trillion-of-us-debt-will-mature-in-2025-should-investors-be-worried/
https://www.wral.com/business/mike-walden-federal-debt-explained-march-2025/
