Donald Trump's proposed 'big, beautiful bill' is projected to add trillions to the US national debt, intensifying concerns among economists and politicians. Despite bipartisan calls for fiscal responsibility, the debt continues its upward trajectory, leading to a recent credit rating downgrade by Moody's and warnings of a potential economic crisis.
Trump bill set to add trillions to US debt pile – can America stop it climbing?
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Donald Trump's proposed 'big, beautiful bill' is projected to add trillions to the US national debt, intensifying concerns among economists and politicians. Despite bipartisan calls for fiscal responsibility, the debt continues its upward trajectory, leading to a recent credit rating downgrade by Moody's and warnings of a potential economic crisis.
Trending- 1 1939: First broad debt limit introduced at $45bn.
- 2 2008: Barack Obama declared need for fiscal responsibility; national debt stood at about $14.46tn.
- 3 2011: Obama's debt ceiling battle.
- 4 2015: Donald Trump promised to reduce debt; national debt stood at about $24.07tn.
- 5 2024: National debt rose to $35.46tn; federal debt burden equivalent to 98% of US GDP.
- 6 March 2025: Billionaire investor Ray Dalio warned of a crisis within three years.
- 7 May 2025: Moody's stripped the US of its last major top-tier credit rating.
- 8 This week (June 2025): Donald Trump wrote on Truth Social that the Debt Limit should be scrapped.
- 9 By 2035: Federal debt burden expected to rise to 134% of GDP.
- Addition of trillions of dollars to the US national debt pile
- Stripping of US's top-tier credit rating by Moody's
- Warnings of a potential economic crisis within three years
- Increased interest payments on US government debt
- Questions over the reliability of US debt as an investment
- Potential for an 'Economic catastrophe' if the debt limit is not scrapped
What: Donald Trump's proposed 'big, beautiful bill' is expected to add trillions to the US national debt. Economists are concerned, and politicians are angry about the continuously growing national debt. Moody's recently stripped the US of its last major top-tier credit rating, citing the debt pile. There are ongoing legislative battles over the debt ceiling.
When: The national debt has been climbing for decades. Barack Obama committed to curtail debt in '2008'. Donald Trump promised to bring it down in '2015'. Last year (2024), it rose to $35.46tn. Ray Dalio warned of a crisis in 'March' (2025). Moody's downgrade occurred 'last month' (May 2025). Trump posted on Truth Social 'this week' (June 2025). The federal debt burden is expected to rise to 134% of GDP by '2035'.
Where: United States, Washington, Wall Street, Capitol Hill.
Why: The debt increase is driven by Trump's push for sweeping tax cuts and successive US administrations and Congress failing to agree on measures to reverse large annual fiscal deficits. Rising entitlement spending and broadly flat government revenue contribute to the problem. Rising interest rates have also increased interest payments on government debt. Past policies like Obama's health insurance expansion and Bush's tax cuts and the Iraq war also contributed.
How: The debt is growing through legislative actions (e.g., Trump's bill), lack of fiscal discipline, and the need for the US Treasury Department to repeatedly ask Congress to lift or suspend the debt ceiling. Credit rating agencies like Moody's assess and downgrade ratings based on fiscal trends.