The US Treasury has reported staggering liabilities amounting to £36.72 trillion ($48 trillion). This figure highlights a severe imbalance, indicating that liabilities are nearly eight times greater than assets. The findings reveal that the US government’s net position worsened by £1.59 trillion ($2.07 trillion) in a single year, resulting in a total negative balance of £32.04 trillion ($41.72 trillion).
Financial Overview of US Liabilities
The FY 2025 Financial Report provides a consolidated overview of all federal government branches, including executive, legislative, and judicial. Key factors contributing to the growing deficit include:
- Federal debt and interest payable: Rose by £1.54 trillion ($2 trillion), totaling £23.30 trillion ($30.33 trillion).
- Federal employee and veteran benefits payable: Increased by £337 billion ($438.8 billion), reaching £11.88 trillion ($15.47 trillion).
Social Insurance Obligations
Solely addressing on-balance-sheet data does not tell the whole story. The off-balance-sheet Statement of Social Insurance (SOSI) reveals even more concerning trends. The unfunded obligation for social insurance skyrocketed by £7.76 trillion ($10.1 trillion) within a year, now totaling £67.88 trillion ($88.4 trillion).
- Medicare shortfalls accounted for £5.30 trillion ($6.9 trillion) of this increase.
- Social Security contributed an additional £1.92 trillion ($2.5 trillion).
When combining on and off-balance-sheet obligations, total federal commitments exceed £104.64 trillion ($136.2 trillion), which is approximately five times the annual economic output of the United States.
GAO’s Disclaimer on Federal Financial Statements
The Government Accountability Office (GAO) issued its 29th consecutive disclaimer concerning the US federal government’s financial statements. Published on March 19, 2026, this report (GAO-26-108073) revealed foundational issues, such as:
- Financial management failures, particularly at the Department of Defense.
- Inability to reconcile transactions between federal agencies.
- Systemic weaknesses in assessing financial statements.
The GAO stressed that these material weaknesses hinder reliable reporting of significant assets, liabilities, and costs.
Rapidly Increasing Interest Costs
Another alarming trend is the steep increase in interest payments on national debt. In FY 2024, interest payments reached £677 billion ($881 billion), surpassing defense spending. By FY 2025, this climbed to £745 billion ($970 billion).
Projections indicate that interest costs will exceed £769 billion ($1 trillion) in FY 2026, with estimates reaching £1.38 trillion ($1.8 trillion) by 2035. Foreign creditors, including China, receive nearly a quarter of these interest payments, limiting economic circulation within the US.
Conclusion
The data from the US Treasury paints a troubling picture of the nation’s fiscal health. With total liabilities reaching £36.72 trillion ($48 trillion) and growing interest costs, the urgency for Congress to craft a viable strategy for addressing these unsustainable fiscal challenges has never been more pronounced.
