The milestone was reached last week, the first time since World War Two that US debt has exceeded the size of the economy.
The report blames Donald Trump-era Republican policies and unified government for worsening deficits, after debt had already risen under George W Bush, Barack Obama and Joe Biden.
It warns sustained borrowing and tax cuts could weaken US economic stability, leave America more vulnerable as a debtor nation and threaten the dollar's reserve-currency status.
Can a future tech boom create enough growth to make America's historic debt level irrelevant?
With debt payments now costing more than defense, what becomes the greatest threat to national security?
As nations seek alternatives, could the world's decades-long reliance on the U.S. dollar finally be ending?
Breaking 100% Debt-to-GDP: The Urgent U.S. Fiscal Crossroads of 2026
Overview
In March 2026, the U.S. national debt surpassed the country's GDP for the first time since World War II, reaching $31.27 trillion against a GDP of $31.22 trillion. This milestone reflects a long-standing structural mismatch between government spending and revenue, driven by major tax cuts, increased federal programs, and demographic pressures from an aging population. Rising entitlement costs and soaring interest payments now consume nearly all federal revenue, forcing the government to borrow for other priorities. Political gridlock prevents meaningful reforms, causing deficits and debt to grow further. This unsustainable path threatens economic stability, raises borrowing costs, risks benefit cuts in Social Security and Medicare, and limits the nation's ability to respond to future challenges.