The U.S. national debt has surged past $38 trillion, according to the U.S. Treasury Department, just two months after surpassing previous forecasts to reach $37 trillion in August. This means the federal debt rose by $1 trillion in a little over two months, which the Peter G. Peterson Foundation calculates is the fastest rate of growth outside the pandemic.
Michael A. Peterson, CEO of the nonpartisan watchdog dedicated to fiscal sustainability, said this landmark is “the latest troubling sign that lawmakers are not meeting their basic fiscal duties.” In a statement provided to Fortune, Peterson said that “if it seems like we are adding debt faster than ever, that’s because we are. We passed $37 trillion just two months ago, and the pace we’re on is twice as fast as the rate of growth since 2000.”
Interest payments on the national debt now total roughly $1 trillion per year, the fastest-growing category in the federal budget.
The partial government shutdown, now entering its third week, is compounding those challenges. Shutdowns have historically been costly, adding $4 billion to federal expenses during the 2018–2019 closure and $2 billion in 2013, according to federal estimates. Each day of stalled government operations contributes to higher short-term costs, delayed economic activity, and postponed budgetary reforms—effectively worsening the debt problem they often stem from.