US Credit Rating Downgraded Due to Soaring Debt and Republican Budget Bill
Moody’s Ratings downgraded the United States’ credit rating on Friday, citing rising debt and a projected Republican budget bill that would add trillions of dollars to the federal balance. The downgrade comes as the country faces a massive debt imbalance, with interest payments coupled with low revenue expected to contribute to the growth.
The legislation, known as the One Big Beautiful Bill Act, is expected to cut taxes by $3.8 trillion over the next decade and reduce federal spending. However, experts warn that the official cost of the bill could be as high as $3.3 trillion, considering interest owed on new debt.
Federal deficits are projected to grow to 9 percent of the country’s gross domestic product by 2035, from 6.4 percent last year, according to Moody’s. The agency also noted that government spending on programs such as Social Security and Medicare would add to the debt.
The downgraded rating comes amid concerns about the country’s fiscal metrics, with Republicans accused of prioritizing deficit-busting tax giveaways over responsible spending and revenue measures. Senate Democratic Leader Charles E. Schumer called for an end to “reckless pursuit” of deficit-busting tax bills.
While Moody’s retained a “stable” outlook on the US government’s creditworthiness, citing exceptional economic strengths such as its size, resilience, and dynamism, the downgrade highlights growing concerns about the country’s ability to manage its debt.
Source: https://www.washingtonpost.com/business/2025/05/16/credit-rating-triple-abudget