Unprecedented U.S. National Debt Surpasses $37 Trillion, As the 'Impressive, Massive Invoice' Elevates It More by Billions
In a recent development, the One Big Beautiful Bill Act (OBBBA) of 2025, signed into law by President Donald Trump, has raised the U.S. debt limit by a staggering $5 trillion, pushing it above $41 trillion. This move comes as the national debt tracker shows American taxpayers are now on the hook for $37,089,430,594,354.58 as of 8/15/25.
The OBBBA, while addressing fiscal issues primarily through extensions and expansions of tax policies, has raised concerns about the unsustainable fiscal trajectory of the country. Shai Akabas, vice president of economic policy at the Bipartisan Policy Center, expressed doubt that the approaching debt limit would kick-start a serious debate about fiscal reforms.
The bill includes provisions such as the permanent extension of individual tax rates from the 2017 Tax Cuts and Jobs Act, enhancements and expansions of tax credits related to child care, health savings accounts (HSAs), education, and health care flexibility, and implementation of work requirements in Medicaid. However, analyses suggest that the OBBBA increases the national debt substantially instead of putting it on a sustainable downward trajectory.
Despite certain attempts to curb spending within Medicaid and incentivize economic growth through tax incentives, the OBBBA does not offer comprehensive solutions to the unsustainable fiscal trajectory or meaningfully reduce the high national debt. The bill faces opposition from fiscally conservative Republicans on grounds that it lacks sufficient spending cuts and instead provides significant tax breaks to the wealthy, exacerbating fiscal imbalances.
Ray Dalio, renowned investor and founder of Bridgewater Associates, has warned of a looming fiscal crisis if the U.S. does not address deficit spending, likening it to an "economic heart attack." The debt limit increase included in OBBBA aims to avoid the worst risks of not dealing with the debt limit in a timely manner.
As lawmakers have a couple of years until the debt limit approaches again, discussions about fiscal reforms and the need for comprehensive solutions to the unsustainable fiscal trajectory are likely to continue. Proposals such as the Responsible Budgeting Act, which would de-risk the debt limit's potential impact on the economy by allowing the debt limit to be suspended in exchange for Congress voting on specific debt reduction measures, are being considered.
However, experience suggests that these proposals may not lead to meaningful action. Akabas has mentioned various proposals in Congress and policy circles for reforming the debt limit, such as the creation of a fiscal commission or the Responsible Budgeting Act. Yet, he expressed that the OBBBA did not spur a meaningful broader conversation about the unsustainable fiscal trajectory.
In conclusion, while the OBBBA includes policy adjustments aimed at economic and health care flexibility, it does not offer comprehensive solutions to the unsustainable fiscal trajectory or meaningfully reduce the high national debt. The U.S. government must address this issue to avoid a potential fiscal crisis in the future.
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