U.S. National Debt Reaches About $39 Trillion as Annual Interest Costs Near $1 Trillion

The U.S. national debt has risen to about $39 trillion, with public debt roughly equal to total U.S. GDP, and annual interest expenses reaching about $1 trillion, exceeding the defense budget. According to Odaily, the U.S. Treasury debt system traces back to 1790, when Alexander Hamilton promoted debt consolidation reforms under which the federal government assumed states’ wartime debts and pledged full repayment. The report said this framework helped establish U.S. credit and laid the foundation for the global standing of the U.S. dollar and U.S. Treasuries. It added that U.S. Treasuries are widely held by global central banks and financial institutions and are viewed as a core asset in the global financial system. As debt continues to expand, the article said market concerns about long-term sustainability have increased. The Penn Wharton Budget Model estimates that when the debt-to-GDP ratio exceeds about 210%, the fiscal system may face unsustainable risks. The report said the current U.S. debt-to-GDP ratio is about 100%, while the Congressional Budget Office projects it could rise to 175% by 2056. It added that analysis suggests the risk threshold could be reached earlier if healthcare spending grows and fiscal deficits continue to widen, putting greater scrutiny on the long-term stability of the debt structure.