U.S. debt tops $38 trillion for the first time, worsened by government shutdown - CBS News
Original story by: CBS News
Last updated: Oct 22, 2025
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- Context: The U.S. gross national debt has reached a record high of over $38 trillion for the first time. This milestone coincides with a government shutdown, which disrupts economic activity and can further increase the national debt. Experts are expressing significant concern about the accelerating pace of debt accumulation and its potential long-term economic consequences.
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- Detailed Summary:
- U.S. Treasury Department data confirms the national debt has exceeded $38 trillion.
- The current government shutdown is exacerbating economic disruption, with hundreds of thousands of federal workers unpaid.
- Government shutdowns can increase the national debt by delaying economic activity, postponing fiscal decisions, and incurring costs associated with pausing and restarting federal programs. An estimated $2 billion was lost in worker productivity during the 2013 shutdown.
- Michael A. Peterson, CEO of the Peter G. Peterson Foundation, stated that reaching this debt level during a shutdown indicates a failure of lawmakers to meet fiscal duties, noting that the debt is accumulating at twice the rate seen since 2000.
- The 2018 government shutdown, lasting 35 days, cost the economy an estimated $11 billion due to reduced spending by federal workers.
- A Peterson Foundation survey found that 81% of voters consider the national debt a significant concern.
- Economists warn that a growing national debt leads to higher interest costs for the U.S. government.
- Interest payments on the national debt are projected to increase from $4 trillion over the past decade to $14 trillion over the next ten years, potentially reducing public and private spending.
- David Kelly of J.P. Morgan Asset Management suggests that rising U.S. debt could erode investor confidence in the economy.
- Credit rating agencies Moody's, Standard & Poor's, and Fitch Ratings have all downgraded the U.S. credit rating, reflecting concerns about the escalating debt.
- Maya MacGuineas of the Committee for a Responsible Federal Budget expressed concern about the public becoming desensitized to fiscal dysfunction, highlighting the failure to pass budgets and address long-term fiscal challenges like the depletion of Social Security and Medicare trust funds.
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