The United States federal debt has surpassed $37 trillion, reaching this milestone five years ahead of pre-pandemic forecasts, as reported by multiple sources including the Congressional Budget Office (CBO) and the U.S. Treasury. This surge is largely attributed to recent tax and spending legislation signed into law, notably the so-called "Big Beautiful Bill," which has allowed the national debt to increase by hundreds of billions of dollars in a short period. The CBO warns that these federal budget deficits could trigger automatic Medicare cuts totaling approximately $491 billion to $536 billion if Congress does not intervene. Additionally, the U.S. government paid around $1.2 trillion in interest on public debt over the last 12 months, marking the highest interest expense ever recorded and making it the second-largest government outlay after Social Security. Household debt also reached a record $18.4 trillion in the second quarter of 2025, with mortgage debt at $12.9 trillion, credit card debt at $1.2 trillion, auto loans at $1.7 trillion, and student loans at $1.6 trillion. Credit card debt alone has risen 57% over the last 4.5 years, hitting a record $1.21 trillion. Delinquencies on credit card, student, and auto loans have reached crisis levels, with serious delinquencies (90+ days) at 12.3% for credit cards and 13% for student loans, the latter marking a record high. Budget watchdogs project that federal budget deficits will be nearly $1 trillion higher over the next decade than previously forecast due to the combined effects of tax and spending laws and tariffs. The escalating debt and associated costs have raised concerns about the fiscal trajectory and the burden on future generations.