U.S. debt held by the public tops GDP for first time since World War II, report says

U.S. federal debt held by the public has surpassed the size of the economy for the first time since World War II, highlighting the country’s growing fiscal burden.

Debt held by the public reached $31.27 trillion at the end of April, slightly above U.S. gross domestic product of $31.22 trillion for the period from April 2025 to March 2026, according to an analysis by the Committee for a Responsible Federal Budget.

Analysts attributed the increase to a combination of tax cuts, higher spending—particularly on interest payments—and the rising cost of federal programs tied to an aging population, including Medicare and Social Security. The Committee said that, aside from a brief period early in the COVID-19 pandemic when GDP fell sharply, debt exceeded GDP only for two years at the end of World War II.

The report said net interest payments on the national debt now exceed $1 trillion annually, surpassing federal spending on national defense or Medicare.

Outlook for debt levels

The Congressional Budget Office projects that debt held by the public will keep climbing, reaching $53 trillion by 2036. Under that forecast, the debt-to-GDP ratio would rise from roughly 101% this year to 120% in 2036, above the prior peak of 106% in 1946.

What could stabilize the trajectory

Some fiscal experts say policy choices could alter the debt path. The Committee for a Responsible Federal Budget has proposed reducing the federal deficit to 3% of GDP, arguing that such a target could help stabilize the debt-to-GDP ratio and bolster market confidence.