US Nat'l Debt Surges Past $39T Amid War03/19 06:18

   

   WASHINGTON (AP) -- The national debt surpassed a record $39 trillion on 
Wednesday, a milestone that comes just weeks into the U.S.-Israeli war in Iran.

   The unprecedented figure highlights competing administration priorities, 
from passing a massive tax law and boosting defense spending and immigration 
enforcement to chipping away at the debt itself -- the latter of which Donald 
Trump promised to do as both a candidate and as president.

   The Government Accountability Office outlines some of the impact of rising 
government debt on Americans -- including higher borrowing costs for things 
like mortgages and cars, lower wages from businesses having less money 
available to invest, and more expensive goods and services. Advocates for a 
balanced budget also warn that the long-term trend of borrowing more and paying 
more in interest will force Americans to face tougher fiscal tradeoffs ahead.

   Michael Peterson, chair and CEO of the nonprofit Peter G. Peterson 
Foundation, created to raise awareness of America's long-term fiscal 
challenges, said in a statement that "we must recognize this alarming rate of 
growth and the significant financial burden we are putting on the next 
generation."

   The trajectory of the rising costs is also a concern. The federal debt has 
surged under both Republican and Democratic presidents, most recently fueled by 
wars, large-scale pandemic spending and tax cuts.

   The U.S. national debt hit $38 trillion five months ago -- and $37 trillion 
two months before that.

   "At the current growth rate, we will hit a staggering $40 trillion in 
national debt before this fall's elections," Peterson said. "Borrowing trillion 
after trillion at this rapid pace with no plan in place is the definition of 
unsustainable."

   White House economic adviser Kevin Hassett estimated on Sunday that the war 
in Iran had cost the U.S. more than $12 billion so far. It is unclear when the 
war will end.

   Kush Desai, a White House spokesman, pointed to a decline in the federal 
deficit during Trump's first year back in office.

   According to Treasury's Fiscal Data website, total government spending in 
fiscal year 2025 was $7.01 trillion and total revenue was $5.23 trillion, 
resulting in a deficit of $1.78 trillion, which is a decrease of $41 billion 
from the previous fiscal year.

   Desai said the decrease in the deficit is attributable to raising individual 
tax revenue and a "government right-sizing push that has reduced federal 
employment to its lowest level since 1966, and aggressive crackdown on federal 
welfare fraud. As these and other initiatives continue taking effect, America's 
deficit and debt-to-GDP ratios will continue trending in the right direction."