Trump Faces Criticism Over Rising National Debt Ahead of State of the Union

‎Hours before President Donald Trump delivers his State of the Union address, the Committee for a Responsible Federal Budget (CRFB) delivered a sharp critique of his administration’s economic policies. The watchdog warned that the nation faces unprecedented debt levels, contradicting the fiscal achievements Trump is expected to highlight.

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‎Budget watchdog warns U.S. debt at record highs before Trump’s State of the Union, citing tariffs, tax cuts, and unsustainable spending as key drivers.

‎Win McNamee/Getty Images

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‎Maya MacGuineas, CRFB president, stressed that Americans are entering 2026 “more indebted than ever outside a war or emergency.” Her statement follows heightened tensions between the watchdog and Treasury Secretary Scott Bessent, which erupted after the Supreme Court struck down Trump’s emergency tariffs implemented under the International Emergency Economic Powers Act (IEEPA).

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‎The CRFB projected that the loss of these tariffs could slash $2 trillion in federal revenue over the next decade. Without this funding, the national debt could rise to 131% of GDP by 2036, surpassing earlier estimates of 120% from the Congressional Budget Office (CBO). Despite this, Bessent publicly challenged CRFB’s figures, claiming federal revenue would remain stable thanks to replacement tariffs under the 1974 Trade Act.

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‎Bessent criticized MacGuineas personally, calling her projections “wrong” and suggesting her organization’s name is misleading. In response, MacGuineas said Bessent’s comments were “a bit of an odd response,” emphasizing that the CRFB supports using tariff revenue to improve the country’s fiscal situation. She noted, however, that temporary tariffs alone cannot resolve long-term debt concerns without spending reductions or alternative revenue sources.

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‎The CRFB highlighted Trump’s broader domestic policies as primary contributors to debt growth. MacGuineas specifically targeted the One Big Beautiful Bill Act, projecting it could add $4.2 trillion to the national debt by 2034. Over 30 years, its tax breaks and spending could accumulate $32 trillion in additional debt.

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‎The watchdog cautioned that unchecked borrowing could slow economic growth, with interest payments on the national debt approaching $17 trillion by 2036 and annual costs exceeding $2 trillion by 2035. MacGuineas urged the president to acknowledge the bipartisan nature of the debt issue and consider measures such as a 3% deficit-to-GDP target, strengthening Social Security and Medicare, and creating a bipartisan debt commission. She stressed that Americans deserve leadership that addresses fiscal responsibility as the country marks its 250th anniversary.