U.S. National Debt Surges by $6 Billion Daily—Here’s What You Need to Know in 2025

• How Fast Is the U.S. National Debt Growing?
• What’s Driving the Debt Explosion?
• Who Owns All This Debt?
• Interest Payments: The Budget’s Silent Killer
• Credit Downgrades: America’s AAA Status Fades
• Can This Trend Be Reversed?
• What Happens Next?
• FAQs

The U.S. national debt is skyrocketing at an alarming rate of nearly $6 billion per day, reaching a staggering $37.8 trillion as of October 2025. With interest payments now surpassing defense and Medicare spending, economists warn of unsustainable fiscal trends. This article breaks down the debt’s growth, its holders, and the political gridlock fueling the crisis—plus why Moody’s just downgraded America’s credit rating.

How Fast Is the U.S. National Debt Growing?

Picture this: every second, the U.S. debt grows by $69,890. That’s $4.2 million per minute, or roughly $6 billion daily—enough to buy 120 Boeing 737 jets every 24 hours. According to the U.S. Bureau of Economic Analysis, the government has been borrowing $1 trillion every five months, pushing the total debt to $37.8 trillion as of August 2025. At this rate, we’ll hit $38 trillion before Halloween.

What’s Driving the Debt Explosion?

Blame it on the "One Big Beautiful Bill Act" (yes, that’s its real name). Intended to save $1.6 trillion, it ironically expanded deficits by $4.1 trillion over a decade. Net interest payments alone hit $879.9 billion in 2024—more than Medicare ($874.1B) and defense ($873.5B). As Keith Self (R-TX) grimly quoted Hemingway: "How did you go bankrupt? Gradually, then suddenly."

Who Owns All This Debt?

Private investors hold the lion’s share—$24.4 trillion, or two-thirds of the total. Foreign governments like Japan ($1.1T), the U.K. ($809B), and China ($756B) own another $8.5 trillion. The rest? Federal trust funds and the Fed hold $11.9 trillion. Fun fact: China’s holdings are now at their lowest since 2009—they’ve been quietly diversifying into Gold and euros.

Interest Payments: The Budget’s Silent Killer

Remember when annual interest averaged $332 billion (2017–2021)? Now it’s more than doubled to $879.9 billion—13% of all federal spending. The Congressional Budget Office projects $1.4 trillion yearly by 2035. That’s like funding NASA’s entire budget… eight times over.

Credit Downgrades: America’s AAA Status Fades

Moody’s May 2025 downgrade to AA1 followed Fitch’s 2023 MOVE and S&P’s 2011 cut. We’re now ranked alongside France and New Zealand, trailing Germany and Australia. The reason? "Chronic fiscal mismanagement," says Moody’s analyst Sarah Carlson. "They’re treating the debt ceiling like a revolving door."

Can This Trend Be Reversed?

Elon Musk’s 2021–2023 "Department of Government Efficiency" slashed $200 billion in waste—proving savings are possible. But with entitlement programs (Social Security, Medicare) consuming 60% of spending, real reform requires political courage neither party has shown. As the BTCC research team notes, "Debt-to-GDP at 119.4% puts the U.S. in Greece’s 2010 territory—without the Mediterranean weather."

What Happens Next?

If trends hold, debt hits $52 trillion by 2035—roughly 140% of GDP. Some economists argue we can "grow our way out" via tech booms or inflation. Others warn of a bond market revolt. One thing’s certain: at $6 billion a day, the clock is ticking louder than a Geiger counter at a uranium sale.

FAQs

How much U.S. debt does China own?

China holds $756 billion as of 2025—down from $1.3 trillion peak in 2013. They’ve been reducing exposure since the trade wars.

What’s the debt-to-GDP ratio?

119.4%, surpassing 2008 crisis levels. For context, the EU stability pact caps members at 60%.

When did Moody’s downgrade the U.S.?

May 2025, citing "inability to address deficits." It’s the third major downgrade since 2011.