U.S. public debt topped 100% of GDP at the end of March, crossing a symbolic line that fiscal hawks have warned about for years. Debt held by the public stood at $31.265 trillion, while GDP over the prior year was $31.216 trillion.
The ratio hit 100.2%, up from 99.5% at the end of the last fiscal year on Sept. 30. The federal government is still running annual deficits of nearly 6% of GDP, which keep adding to the pile.
Interest keeps biting
The debt load now requires more than $1 trillion in interest payments every year. The U.S. also added $1 trillion to the federal deficit in the first five months of the year, according to a March Congressional Budget Office report cited by Fortune.
- The Committee for a Responsible Federal Budget said debt held by the public was $31.27 trillion as of March 31.
- The Independent reported the debt is on course to challenge the 106% postwar record from 1946.
- The CBO projected public debt would reach 108% by 2030 if the current path continues.
Lawmakers reacted with sharper language than usual. Senator Rick Scott called the milestone “just embarrassing” and said Washington needed to “cut up the credit cards.” Nikki Haley called it a “dangerous milestone.” Senator Rand Paul said the biggest national security risk facing the country is its debt.
CBO director Phil Swagel offered the softer note. He told Fortune that his conversations with members of Congress make him optimistic that a crisis can be avoided. The harder number is still moving: the CBO sees debt held by the public reaching 120% of GDP a decade from now.
