U.S. Public Debt Tops 100% of GDP Since WWII

U.S. public debt surpassed the size of the nation's economy for the first time since the end of World War II, reaching 100.2 percent of gross domestic product as of March 31.

Data from the Bureau of Economic Analysis showed publicly held federal debt at 31.27 trillion dollars, exceeding nominal GDP of 31.22 trillion dollars for the prior 12 months. The ratio rose from 99.5 percent in September 2025. Total gross national debt, including intragovernmental holdings, now stands above 39 trillion dollars.

The milestone reflects persistent budget deficits averaging around 6 percent of GDP, with the government spending 1.33 dollars for every dollar in revenue. Net interest payments on the debt reached 971 billion dollars in fiscal 2025 and are projected to hit 1 trillion dollars in fiscal 2026, surpassing defense spending. Interest costs now rank as the second-largest budget item after Social Security, according to Congressional Budget Office estimates.

Mandatory spending on Social Security, Medicare, Medicaid and interest is expected to exceed federal tax revenue starting in 2027, leaving all discretionary outlays financed through borrowing. The nonpartisan CBO forecasts debt held by...