Trump increased the national debt by $2.25 trillion during his initial year after returning to office, according to a watchdog report

U.S. National Debt Surges During Trump’s First Year Back in Office

During Donald Trump’s initial year after returning to the presidency, the United States saw its national debt swell by approximately $2.25 trillion, highlighting the rapid pace at which federal borrowing is increasing—even as public discussions focus on cryptocurrency trends and pledges to reduce the deficit. In the calendar year 2025 alone, the debt grew by an even larger margin of $2.29 trillion.

As of January 9, the national debt had reached $38.4 trillion and continued to climb, prompting renewed concern from both fiscal watchdogs and financial markets about the sustainability of America’s fiscal trajectory. According to Congressman David Schweikert’s Daily Debt Monitor, the debt has been increasing at a rate of $71,884.09 every second over the past year.

Data provided to Fortune by the Peter G. Peterson Foundation shows that from January 17, 2025, to January 15, 2026, the federal government added about $2.25 trillion to the national debt—an interval that closely matches Trump’s first year back in office. Notably, the debt jumped from $37 trillion to $38 trillion in just two months between August and October, a pace the Peterson Foundation described as the fastest outside of the pandemic era. Michael A. Peterson, the foundation’s CEO, remarked to Fortune that the nation is indeed accumulating debt at an unprecedented rate.

Comparing Debt Growth Across Recent Presidencies

Looking at the past 25 years, the Peterson Foundation’s analysis reveals that President Joe Biden oversaw the largest single-year increase in national debt outside of the pandemic, with nearly $2.6 trillion added in 2023. Trump, however, holds the all-time record, with almost $4.6 trillion in new debt during the pandemic year of 2020, when emergency relief spending soared.

Between Trump and Biden, the two presidents account for the five highest years of debt growth in the last six years—two under Trump and three under Biden. While these figures are not adjusted for inflation, the rate of debt accumulation under Trump and Biden is roughly double that of President Barack Obama and up to four times higher than under President George W. Bush, depending on the term. Both Bush and Obama, it should be noted, managed the aftermath of the 2008 financial crisis, and experts continue to debate whether their fiscal responses were sufficient.

Interest Payments Reach Historic Highs

The ballooning debt comes as interest expenses on federal borrowing have become one of the fastest-growing items in the budget. For fiscal year 2025, net interest payments totaled $970 billion, but the Congressional Budget Office (CBO) reported that, including all net interest outlays, the total surpassed $1 trillion for the first time. The Committee for a Responsible Federal Budget projects that annual interest costs will remain above $1 trillion going forward.

Trump has argued that his aggressive tariff policies could generate enough revenue to address the debt, positioning tariffs as a major source of federal income. While tariffs have indeed boosted government revenue—estimated at $300 billion to $400 billion annually—these amounts cover only a portion of yearly interest payments and an even smaller share of total federal expenditures. After Trump scaled back some tariff threats, the CBO estimated that $800 billion in anticipated deficit reduction was lost.

The administration has also proposed distributing a $2,000 “dividend” to every American, funded by tariff revenues. Independent analysts estimate this initiative could cost around $600 billion per year, likely increasing the deficit unless offset by other measures. Economists warn that the combination of higher borrowing, elevated interest rates, and new spending commitments could entrench structural deficits, causing debt to outpace economic growth.

Financial Markets and Economic Vulnerability

Investors are increasingly wary as the U.S. government issues hundreds of billions in new Treasury securities each week. Yields on longer-term bonds have risen, reflecting tighter monetary policy and concerns about the scale of federal borrowing. Recent research from Deutsche Bank and others has labeled America’s rising debt as its “Achilles’ heel,” warning that it could make the dollar and the broader economy more susceptible to shocks, especially as geopolitical tensions and trade disputes intensify.

These concerns are heightened by the possibility of future recessions or emergencies that could force even more borrowing. While credit rating agencies and global lenders have not issued immediate warnings about U.S. solvency, they have increasingly flagged fiscal risks, citing persistent deficits and political gridlock over budget discipline.

Public Concern Over the National Debt

Most Americans agree that the national debt is a pressing issue. According to a recent survey by the Peterson Foundation, about 82% of voters consider the debt a significant concern, even though there is little consensus on which programs to cut or taxes to raise.

Trump originally campaigned on a promise to eliminate the national debt. Yet, a decade later and after his return to office, the debt has reached unprecedented levels. As the administration faces another year of policymaking and fiscal negotiations in Congress, the debate is shifting from whether the debt is rising too quickly to how long the world’s largest economy can sustain its current path.