U.S. Debt Tops $40 Trillion as Social Security Faces Growing Funding Gap

The United States is entering an increasingly expensive phase of retirement as the country's aging population puts greater pressure on federal entitlement programs and the national debt continues to rise.

The US national debt continues to climb as Washington faces growing fiscal pressure from Social Security, Medicare and rising interest costs.

The national debt has passed the $40 trillion mark, while Social Security's retirement trust fund is projected to become depleted in the early 2030s unless Congress acts to change the program's finances, Joshua Hong reported for Fortune.

The Congressional Budget Office (CBO) has projected that federal spending on Social Security and Medicare will account for a substantial share of the increase in mandatory spending over the coming decade.

In 2026, rising Social Security and Medicare spending accounts for a significant portion of the projected increase in mandatory federal outlays.

Meanwhile, interest costs are adding another layer of pressure to the federal budget. CBO projections show that net federal interest costs are expected to exceed $1 trillion in 2026 and continue rising over the next decade.

The growing interest bill means that an increasing share of federal resources is being used to service previously accumulated debt, even as spending on Social Security, Medicare and other mandatory programs increases.

Concerns about Social Security's long-term viability have also affected younger Americans' expectations about the program.

A December 2025 survey by the Cato Institute found that only 34% of Gen Z respondents expected Social Security to exist when they reached retirement. Cato's June 2026 analysis found that 79% of younger respondents expected some form of reduction in their future benefits.

However, saying that Social Security “goes broke” is misleading. Trust-fund depletion would not mean that Social Security suddenly stops paying benefits.

Under current law, if Congress does not act, the program would be unable to pay full scheduled benefits from that point onward, with incoming payroll-tax revenue still available to finance a substantial portion of scheduled benefits.

The challenge for policymakers is therefore not simply whether Social Security will exist, but how Congress will address the program's projected financing shortfall while balancing taxes, benefits, retirement security and the federal budget.