The U.S. national debt crisis is becoming a growing concern for policymakers, economists, and citizens alike. With the national debt now exceeding 36 trillion dollars, questions are rising about how the country will manage the costs of borrowing and how this massive debt could impact future government spending—especially on important programs like Social Security and Medicare.
This article explains what the national debt is, why it’s growing so fast, and what the consequences could be for the average American.
What is the National Debt?
The national debt is the total amount of money the federal government owes. It includes two main parts:
- Public debt, which is borrowed from individuals, foreign governments, banks, and investment funds
- Intragovernmental debt, which is borrowed from government accounts like the Social Security Trust Fund
The national debt increases when the government spends more than it earns in taxes and other revenue. Each year of deficit spending adds to the total debt.
As of late 2025, the U.S. national debt is over 36.5 trillion dollars. That’s more than $109,000 per American citizen.
Why the National Debt is a Growing Crisis
Rising Interest Rates
To control inflation, the Federal Reserve has raised interest rates several times in recent years. Higher interest rates increase the cost of borrowing for everyone—including the federal government. This means the government has to spend more money just to pay interest on the debt it already has.
Massive Federal Spending
The federal government has spent heavily in recent years. Emergency COVID-19 relief programs, stimulus checks, student loan relief, defense budgets, and entitlement spending have all contributed to the growing debt.
Slower Revenue Growth
While tax revenues have grown in some years, they haven’t kept pace with spending. Tax cuts, economic downturns, and loopholes in the tax system have held revenues back, leading to larger deficits.
The Cost of Interest Payments
In 2025, the federal government is expected to spend more than 1 trillion dollars just on interest payments. That is more than the government spends annually on Medicare or national defense.
Interest payments have become the fastest-growing part of the federal budget. This is money that could otherwise be used for education, infrastructure, healthcare, or paying down the debt itself.
When so much of the budget goes toward interest, it limits the government’s ability to invest in the future or respond to emergencies.
How the Debt Crisis Affects Social Security and Medicare
Social Security
The Social Security Trust Fund is projected to run short by 2034. If no changes are made before then, retirees may face automatic benefit cuts of about 20 percent.
In the past, fixing Social Security might have involved tax increases or gradual changes to benefits. But with rising debt and higher interest payments, the government has less flexibility. Every dollar used to pay interest is a dollar not available to support retirees.
Medicare
The Medicare Trust Fund for hospital insurance (Part A) could run out by 2031. If that happens, the program would only be able to pay for about 89 percent of expected hospital costs.
Like Social Security, Medicare reforms may become harder to achieve if debt payments continue to rise. There may be fewer options to expand coverage, reduce premiums, or improve care quality when a large share of the budget is already spoken for.
Other Programs at Risk
As the debt crisis worsens, other important programs may face cuts or limits in growth. These include:
- Veterans’ healthcare and benefits
- Public education funding
- Environmental protection programs
- Food assistance for low-income families
- Transportation and infrastructure investments
If more of the budget goes to interest payments, lawmakers may have to make difficult choices about which programs to prioritize and which to scale back.
How the Debt Got This High: A Brief Timeline
Here’s a simple look at how the debt has grown over the past few decades:
- 2000: $5.6 trillion – The government ran a surplus in the late 1990s
- 2008: $10 trillion – The financial crisis led to bailouts and stimulus packages
- 2020: $23 trillion – COVID-19 emergency spending drove debt higher
- 2023: $31 trillion – Higher inflation and more borrowing
- 2025: $36.5 trillion – Interest payments accelerate the crisis
Could the U.S. Default?
Technically, the U.S. could default on its debt if Congress refuses to raise the debt ceiling. While unlikely, the country has come dangerously close to this in recent years.
Even without default, the national debt crisis could harm the country’s financial reputation. Investors may become less willing to lend to the U.S., or may demand higher interest rates to do so.
Long-Term Risks of High National Debt
Higher Taxes
To manage the debt, future lawmakers may have to raise taxes on income, businesses, or investments. This could slow down economic growth and hurt small businesses and middle-class families.
Rising Inflation
While inflation is mainly affected by other factors, too much borrowing and spending can add to price increases, especially if the economy overheats.
Slower Economic Growth
A large national debt can limit private investment. If the government borrows too much, it competes with businesses and consumers for available credit, which can lead to higher interest rates across the economy.
Reduced Global Power
If the U.S. continues to borrow heavily, other countries may start to lose trust in its financial strength. Foreign governments could sell off U.S. bonds or move away from using the dollar in trade, which could reduce America’s influence in the world economy.
What Can Be Done?
Fiscal Reform
Many experts agree that solving the debt crisis will require a mix of spending cuts and new revenue. This could include:
- Reforming Social Security and Medicare
- Cutting wasteful or outdated programs
- Raising taxes on high-income earners or closing loopholes
These changes will likely require bipartisan agreement and strong political leadership.
Strengthening Entitlement Programs
To protect Social Security and Medicare, changes might include:
- Raising the retirement age
- Adjusting benefit formulas
- Increasing payroll taxes for high earners
Fixing these programs now could prevent more painful cuts in the future.
Growing the Economy
A growing economy helps manage the debt by increasing tax revenue without raising tax rates. Investments in education, technology, infrastructure, and job training can help expand the economy and reduce the debt burden over time.
What Citizens Can Do
You might not be able to control federal policy, but you can stay informed and engaged. Here’s how:
- Vote in local and national elections
- Contact your lawmakers and express concern about the debt
- Support leaders who promote balanced budgets and long-term planning
- Talk to friends and family about the issue to raise awareness
Final Thoughts
The U.S. national debt crisis is not just a problem for economists or politicians. It affects everyone. If the debt keeps growing at its current pace, it will threaten funding for the very programs many Americans rely on—like Social Security, Medicare, education, and infrastructure.
Now is the time to act. While there’s no easy fix, smart policy changes today can protect future generations and ensure that the United States remains financially strong in the decades to come
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