U.S. national debt hits $38.5 trillion in January 2026 as interest costs approach $1 trillion

In early 2026, the U.S. national debt climbed to about $38.5 trillion, a level that prior projections had placed closer to 2030. Annual interest payments, which were around $345 billion in 2020, are nearing $1 trillion as borrowing grows, while initiatives such as President Donald Trump's $3.4 trillion "One Big Beautiful Bill," tariffs, and the DOGE efficiency program provide limited relief against the rising total. Despite some cost cuts and tariff revenue, debt per person remains just above $108,000, highlighting the scale of the fiscal challenge.