Government Debt Reaches Historic Peak of $35 Trillion as Treasury Secretary Warns of Economic Consequences
WASHINGTON, D.C. – The United States federal government debt has officially surpassed $35 trillion for the first time in history, according to data released today by the Department of the Treasury. This record-breaking figure, which represents a $1 trillion increase in just three months, was reported during the daily Treasury statement release at 8:00 AM Eastern Standard Time. Treasury Secretary Janet Yellen stated that the milestone signals urgent fiscal challenges, including higher interest costs that could crowd out essential spending on infrastructure and social programs. The jump is attributed to ongoing borrowing for pandemic-era relief programs and rising entitlement costs, amid bipartisan disagreements over spending limits. Economists on both sides of the political spectrum warn that this level of debt, which now exceeds 120% of the nation's Gross Domestic Product, could slow long-term economic growth and increase vulnerability to future financial crises. The disclosure comes ahead of a critical Congressional budget session scheduled for next week, where lawmakers are expected to debate raising the federal borrowing limit once again.