The U.S. government’s gross national debt has climbed past $37 trillion, a record-breaking milestone that underscores the rapid growth of America’s fiscal obligations and the mounting cost pressures on taxpayers. The Treasury Department confirmed the figure Tuesday in its latest daily financial report — a level reached years ahead of pre-pandemic projections.

In January 2020, the Congressional Budget Office (CBO) estimated that gross federal debt would not surpass $37 trillion until after fiscal year 2030. However, a combination of unprecedented federal borrowing during the COVID-19 pandemic and more recent spending measures has pushed the nation to that threshold far sooner. The pandemic, which began in 2020, prompted both the Trump and Biden administrations to approve trillions in emergency relief to stabilize a shuttered economy and aid recovery.

That borrowing surge has continued into 2024. Earlier this year, President Donald Trump signed into law a Republican-backed tax cut and spending package that the CBO projects will add $4.1 trillion to the national debt over the next decade. Wendy Edelberg, a senior fellow at the Brookings Institution, said the legislation ensures “we’re going to borrow a lot over the course of 2026, we’re going to borrow a lot over the course of 2027, and it’s just going to keep going.”

Fiscal policy experts warn that the consequences are far-reaching. Michael Peterson, CEO of the Peter G. Peterson Foundation, cautioned that sustained borrowing drives up interest rates, increasing costs for households and businesses while crowding out key federal priorities. “It creates a damaging cycle of more borrowing, more interest costs, and even more borrowing,” Peterson said.

The Government Accountability Office lists several impacts of rising federal debt on everyday Americans: higher mortgage and auto loan rates, reduced business investment leading to lower wages, and costlier goods and services.

The pace of debt accumulation has also quickened dramatically. The U.S. hit $34 trillion in January 2024, $35 trillion in July, and $36 trillion in November — meaning each additional trillion has been added roughly every five months. According to the Joint Economic Committee, another trillion could be added in just 173 days at the current rate.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, urged lawmakers to act swiftly. “Hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly,” she said.

This article includes reporting by the Associated Press.