US Debt Tops $38 Trillion Amid Shutdown, The Fastest Pace Since Pandemic
Amid the federal government shutdown, U.S. gross national debt has surpassed $38 trillion, marking the fastest increase since the pandemic. The debt is growing at twice the pace since 2000, raising concerns about financial stability. Billionaire investor Ray Dalio warns of a "dangerous inflection point" as the U.S. spends 40% more than it earns. J.P. Morgan's David Kelly cautions of a potential financial crisis due to debt management issues. However, the Trump administration claims its policies are reducing the deficit, with recent data showing a significant decrease in the cumulative deficit.
Amid the federal government shutdown, U.S. gross national debt surpassed $38 trillion as per Treasury data on Wednesday, raising concerns about the nation’s financial stability.
US Debt Grows At Twice The Pace Since 2000
This is the fastest trillion-dollar increase in debt outside of the COVID-19 pandemic. National debt reached $37 trillion in August 2025, after hitting $34 trillion in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024.
Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, told Fortune, "If it seems like we are adding debt faster than ever, that's because we are. We passed $37 trillion just two months ago, and the pace we're on is twice as fast as the rate of growth since 2000."
‘Dangerous Inflection Point’ Warns Dalio
The Government Accountability Office has previously detailed how growing federal debt can affect Americans — from higher borrowing costs on mortgages and car loans to lower wages and increased prices for everyday goods and services.
Billionaire investor Ray Dalio recently warned that the U.S. federal debt was at a "very dangerous inflection point," with the nation spending 40% more than it was taking in. This, he said, was squeezing the nation’s buying power.
David Kelly, the chief global strategist at J.P. Morgan Asset Management, also cautioned that the U.S. is heading towards a financial crisis, with the primary issue being how the government will manage its debts. He emphasized that the issue will develop gradually over time, despite investors being aware of the debt trajectory.
Bessent Claims Deficit Progress
Still, the Trump administration insists that its policies are helping to curb government spending and will reduce the nation’s substantial deficit.
A recent analysis by Treasury Department officials revealed that the cumulative deficit from April to September totaled $468 billion, the lowest since 2019, down almost 40% from the comparable period under the Biden Administration, Treasury Secretary Scott Bessent shared on X on Wednesday.
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