The U.S. national debt has surpassed $35 trillion for the first time, according to the latest data from the Treasury Department.

This marks a significant increase from $28.5 trillion in July 2020 and $5.5 trillion in July 2000.

The increase in national debt is occurring at a faster rate than anticipated, largely due to rising costs associated with federal programs.

The Congressional Budget Office projects that the national debt will rise from 99% of GDP this year to a record 122% by 2034, driven by heightened interest costs and mandatory spending.

Interest on the national debt has reached $906 billion, nearing the defense budget of $912 billion.

The rising debt and interest payments have become a major political concern in the U.S., with implications for funding in critical areas like education.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, described the ongoing borrowing as 'reckless and unyielding.'

MacGuineas acknowledged the bipartisan Fiscal Responsibility Act as a positive initial step towards deficit reduction.

Michael Peterson, CEO of the Peter G. Peterson Foundation, labeled the crossing of the $35 trillion mark as an 'unfortunate milestone' that should prompt action during the upcoming campaign season.

He emphasized the need for extending caps from the Fiscal Responsibility Act, generating new revenues, and addressing the insolvency risks of Social Security and Medicare trust funds, which are significant contributors to the national debt.

Peterson highlighted critical fiscal deadlines in 2025, including the expiration of the current debt limit suspension on January 1.

The Federal Reserve's next interest rate decision, scheduled for July 31, is highly anticipated and could impact the nation's economic strategy, with expectations of a pause at the current rate of 5.25-5.50%.