US national debt tops $38 trillion for the first time; each American's share exceeds six figures

Amid the federal government shutdown, the US gross national debt has surged past $38 trillion, reaching $38,019,813,354,700.26 as of October 21, according to the latest Treasury Department report. This milestone comes just two months after the nation’s debt hit $37 trillion in August, marking a $1 trillion increase in slightly over two months, the fastest pace of accumulation outside the COVID-19 pandemic, the Peter G. Peterson Foundation says.

The Trump administration says its policies are helping to slow government spending and reduce the nation’s massive deficit. According to a new Treasury Department analysis, the cumulative deficit from April to September totaled $468 billion. In a post on X Wednesday, Treasury Secretary Scott Bessent called it “the lowest reading since 2019.”

“During his first eight months in office, President Trump has reduced the deficit by $350 billion compared to the same period in 2024 by cutting spending and boosting revenue.”

Per capita story

When considering the total US public debt of $38.02 trillion, which includes both Debt Held by the Public and intragovernmental holdings, the burden translates to roughly $114,000 per American based on a 2025 population of about 334 million. This per capita figure illustrates the scale of federal borrowing relative to the population, highlighting that, on average, each US resident’s share of the national debt exceeds six figures.

While this does not represent a personal obligation, it means the fiscal pressures facing the federal government and the potential implications for future taxes, government spending, and economic stability.

Why US debt is rising so quickly

The U.S. reached $34 trillion in debt in January 2024, $35 trillion in July 2024, and $36 trillion in November 2024. Experts believe it's driven by several factors; for this one, the major one is the budget deficit: in the last fiscal year, the government spent $1.76 trillion more than it collected in revenue.

Other common causes are social security and medicare are among the other largest contributors to this growth. As the population ages, these programs require more amounts of funding each year. At the same time, corporate tax revenues have declined, further widening the gap between spending and income.

Tax policies and economic decisions also play a role. Recent tax cuts for certain individuals and businesses have reduced government revenue, while measures like tariffs only partially offset the losses. Political gridlock may also have compounded the issue, as lawmakers struggle to implement long-term solutions to slow spending or boost revenue.

Why it matters to you

A rapidly rising national debt affects everyone. As the government borrows more, interest payments on the debt consume an increasing share of the budget, leaving less for infrastructure, education, healthcare, and other public services.

Over time, high debt can slow economic growth, increase borrowing costs, and make everyday goods and services more expensive. While the effects may not be immediately visible, unchecked debt growth poses long-term risks to the economy and to taxpayers’ financial well-being.