A national taxpayer advocacy group is pressing President Donald Trump and Congress to take immediate action regarding the escalating federal debt, which poses a significant threat to the nation’s financial stability. The call for action follows a report from the Congressional Budget Office (CBO), which projects that federal debt held by the public will soar to 120% of gross domestic product (GDP) by 2036. According to the CBO, the federal government is expected to borrow approximately $26 trillion from late 2025 to 2036, pushing total public debt to around $56 trillion.
As the debt currently stands at about 101% of GDP, it is anticipated to rise steadily over the next decade. National Taxpayers Union President Pete Sepp emphasized that the growing debt burden is already affecting the daily lives of Americans. “Paying for past borrowing is already increasing the cost of living for Americans today,” Sepp stated. He urged Congress and the President to address these issues before the upcoming mid-term elections.
The implications of rising debt are considerable. As debt levels increase, so do interest payments, which can strain fiscal resources. The CBO has indicated that elevated debt levels elevate the risk of fiscal crises and could hinder lawmakers’ ability to respond to emergencies or economic downturns. Furthermore, larger debt loads may lead to increased borrowing costs if investors demand higher interest rates. The CBO’s report highlighted that debt as a percentage of the economy would reach the highest levels in American history, significantly exceeding the 50-year average of 51% of GDP.
Demographic trends also contribute to the debt challenge. As the Baby Boomer generation continues to retire, the number of Social Security beneficiaries will rise, increasing federal health care spending. Meanwhile, forecasts for economic growth remain modest. Sepp pointed out that the central issue is a long-term structural imbalance. “The challenge is not temporary spending spikes or short-term economic conditions,” he said. “The yawning mismatch between long-term commitments and the resources available to finance them grows wider every year. The time to act is now.”
The National Taxpayers Union highlighted a recent poll conducted by Public Opinion Strategies, which found that 89% of registered voters believe the country is facing an affordability crisis. The survey also revealed that 88% of respondents think the national debt, which currently stands at $37 trillion, will ultimately impact their families. When asked about strategies to reduce the debt, 54% favored cutting government spending.
“Americans await leadership to identify real and effective solutions to these spending problems,” Sepp asserted. “They know we cannot afford to keep racking up debt on the nation’s credit card while making interest-only payments anymore.”
Economists and budget analysts have long debated the sustainability of national debt levels. Some estimates suggest that risks increase significantly as debt approaches between 160% and 200% percent of GDP, although the exact tipping point remains uncertain. Nevertheless, federal projections indicate continued growth in deficits and debt over the coming decade, intensifying the pressure on lawmakers to determine whether spending cuts, tax increases, or other fiscal reforms are necessary to stabilize the nation’s finances.
