US national debt tops $39 trillion weeks into Iran war
The unprecedented figure highlights competing administration priorities, from passing a major tax bill and boosting defense spending and immigration enforcement to reducing the debt; Donald Trump has promised to do the latter both as a candidate and as president.
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The Government Accountability Office outlines some of the effects of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages and more expensive goods and services from businesses with less money to invest. Proponents of a balanced budget also warn that the trend of borrowing more and paying more interest over the long term will leave Americans facing tougher financial tradeoffs down the line.
“We must recognize this alarming growth rate and the serious financial burden we are placing on the next generation,” Michael Peterson, president and CEO of the Peter G. Peterson Foundation, a nonprofit founded to raise awareness of America’s long-term financial challenges, said in a statement.
The trajectory of rising costs is also worrying. Federal debt has increased under both Republican and Democratic presidents; the latest wars were fueled by large-scale pandemic spending and tax cuts.
The US national debt reached 38 trillion dollars five months ago, and 37 trillion dollars two months ago. “At the current rate of growth, our national debt will reach a staggering $40 trillion before the election this fall,” Peterson said. “Borrowing trillions at this rapid pace without any planning is the definition of unsustainable.”
White House economic adviser Kevin Hassett estimated Sunday that the war in Iran has cost the United States more than $12 billion so far. It is not clear when the war will end.
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White House spokesman Kush Desai pointed out that the federal deficit decreased in Trump’s first year back in office.
According to the Treasury Fiscal Data website, total government spending in fiscal 2025 was $7.01 trillion and total revenue was $5.23 trillion; This resulted in a deficit of $1.78 trillion, down $41 billion from the previous fiscal year.
Desai said the deficit reduction can be attributed to an increase in individual tax revenues and “the government’s right-sizing effort, which has reduced federal employment to its lowest level since 1966, and an aggressive crackdown on federal welfare fraud. As these and other initiatives continue to be effective, America’s deficit and debt-to-GDP ratios will continue to trend in the right direction.”
