US debt hits $38 trillion as shutdown accelerates borrowing costs

The United States gross national debt surpassed $38 trillion on Wednesday, the Treasury Department reported, marking the fastest $1 trillion increase outside the COVID-19 pandemic. The milestone came as a partial federal government shutdown entered its third week, a combination watchdogs and economists say is accelerating borrowing costs and complicating fiscal policymaking.

The Treasury’s daily financial report shows the rapid climb from roughly $37 trillion in August to $38 trillion in early October. Debt has risen in quick succession over the past two years, reaching $34 trillion in January 2024, $35 trillion in July 2024, $36 trillion in November 2024 and $37 trillion in August 2025. Analysts attribute the latest acceleration to a mix of persistent deficit spending, rising interest costs on existing debt, and economic drag linked to the shutdown.

Michael A. Peterson, chief executive of the Peter G. Peterson Foundation, said the pace of accumulation reflects a failure by lawmakers to address fiscal sustainability. "If it seems like we are adding debt faster than ever, that's because we are," he said, noting that interest payments on the national debt now approach $1 trillion...