US national debt reaches $36 trillion amid 40% deficit surge

The Congressional Budget Office (CBO) has projected that the U.S. national debt will soar to 118% of GDP by 2035, with a deficit of $1.9 trillion expected this fiscal year. This alarming increase is largely driven by rising mandatory spending, particularly on Social Security and Medicare, coupled with tax cuts that could add over $4 trillion to the deficit in the next decade. In the first quarter of fiscal 2025, the deficit surged nearly 40% year-over-year to $710.9 billion, attributed to increasing government expenditures and declining tax revenues. The U.S. Treasury Department noted that interest payments on the national debt have reached $308.4 billion, marking a significant rise due to higher financing costs. Critics, particularly Democrats, argue that extending tax cuts primarily benefits the wealthy and exacerbates fiscal issues. As the new administration takes office, there are calls for responsible solutions rather than more tax cuts that could worsen the fiscal outlook.