US government spending has led to a significant increase in the national debt, which now surpasses $36 trillion. The three-month fiscal year 2025 deficit reached $710.9 billion, a 39.4% jump from the previous year’s comparable period. Rising financing costs and continued spending growth are driving the surge in deficits.
The federal budget saw a decline in tax receipts, while outlays increased by 11% compared to last year. This has pushed the national debt past $36 trillion. Interest on the debt has totaled $308.4 billion in fiscal 2025, up 7% from the previous year.
Financing costs are projected to exceed $1.2 trillion for the full year, surpassing 2024’s record. The government is spending more on interest payments than any other category except Social Security, defense, and health care.
Source: https://www.cnbc.com/2025/01/14/budget-deficit-rose-in-december-and-is-now-40percent-higher-than-it-was-a-year-ago.html