Debt
The Administration’s ‘One Big Beautiful Bill’—having cleared the House and now facing scrutiny in the Senate—has brought renewed attention to the growing U.S. budget deficit and national debt. In May, Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1. This announcement followed previous downgrades by Fitch in 2023 and Standard & Poor's in 2011. All three major credit rating agencies now rate U.S. debt below triple-A reflecting concerns over the nation's spending and national debt.
The national debt is now about $36 trillion (roughly $106,000 per American). Estimates suggest the new budget bill could increase deficits by approximately $2.4 trillion over the next decade as currently written.1 Keep in mind that the bill is expected to be revised as it is debated in the Senate. The chart below shows this history of U.S. debt:
While total U.S. debt is now 121% of GDP, net debt is probably a more useful figure as it excludes debt the government owes itself.
Notes: