The U.S. federal government’s gross national debt surpassed $37 trillion for the first time in history last week, according to a report by FOX Business. The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald Trump on July 4, raised the debt limit by $5 trillion, pushing it above $41 trillion and averting a potential default crisis.

Shai Akabas of the Bipartisan Policy Center noted that the inclusion of the debt limit increase in the OBBBA marked the first time it was raised through budget reconciliation, signaling a shift in how lawmakers approach fiscal constraints. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warned that the move reflects a broader lack of commitment to addressing the country’s unsustainable fiscal trajectory.

Meanwhile, data from the IndexBox platform shows that the U.S. budget deficit has widened by $109 billion compared to the previous year, despite an influx of tariff revenue. Ray Dalio has also cautioned that unchecked deficit spending could lead to a severe fiscal crisis.

Source: IndexBox Market Intelligence Platform