The U.S. national debt crossed 100 percent of GDP for the first time since World War II, reaching $31.27 trillion against annual GDP of $31.22 trillion as of March 31, 2026. The government is now spending $1.33 for every dollar it collects in revenue, with economists warning this is unsustainable — the Congressional Budget Office projects debt could reach 120 percent of GDP by 2036 if current policies don't change. Rising debt service costs will squeeze federal budgets away from other priorities like defense and domestic programs, and economists warn it could trigger a fiscal crisis without significant spending cuts or tax increases.