U.S. National Debt Hits $38 Trillion Amid Government Shutdown

The U.S. Treasury confirmed Wednesday that the national debt has surpassed $38 trillion, marking the fastest $1 trillion increase outside of the pandemic era. The milestone comes as the federal government remains partially shut down, with no budget resolution in sight.

Treasury Secretary Scott Bessent addressed reporters at the White House, calling the debt surge “unsustainable” and urging Congress to act. The U.S. hit $37 trillion just two months ago, underscoring the pace of borrowing tied to entitlement programs, defense spending, and interest payments.

Markets reacted cautiously, with the Dow closing flat and bond yields rising slightly. Economists warn that continued gridlock could trigger credit rating downgrades and higher borrowing costs for consumers.

This development adds pressure on lawmakers ahead of next week’s debt ceiling negotiations. Both parties remain divided on spending cuts and tax reforms.