March 25, 2026
Broke, Busted, Disgusted: Is The U.S Bankrupt?
The government’s consolidated balance sheet deteriorated by roughly $2.07 trillion between 2024 and 2025, and reached a disappointing negative $41.72 trillion.
A new report reveals that the U.S. government is insolvent; it is failing to meet financial obligations to pay off its debts.
The conclusion came from the Treasury Department after it gathered its own consolidated financial statements for fiscal year 2025, and it reads as follows: $6.06 trillion in total assets against $47.78 trillion in total liabilities as of September 30, 2025, Fortune reports.
The $47.78 trillion price tag fails to include unfunded obligations such as social insurance programs like Social Security and Medicare, which were highlighted separately on an off-balance-sheet Statement of Social Insurance (SOSI).
With SOSI excluded, the government’s consolidated balance sheet deteriorated by roughly $2.07 trillion between 2024 and 2025, and reached a disappointing negative $41.72 trillion. The total amount of liabilities is now close to eight times the value of reported assets, with the biggest drivers being a $2 trillion increase in federal debt and interest payable and a $438.8 billion increase in federal employee and veteran benefits payable.
The media may not have covered this much because not even members of Congress have looked at the consolidated sheets. It may be difficult for everyday Americans to understand a debt of that stature. Fortune offered a tip: If you divide every number by 100 million and drop eight zeros, federal financials can look familiar to the average household. If that average American household brings in $52,446 but spends $73,378, those living under that roof would be running an annual $20,932 deficit.
The total amount of liabilities and unfunded promises equates to $1,361,788 against the small amount of $60,554 in assets, leaving $1.3 million in the hole. According to the government, that household would be labeled as insolvent.
And with everything the states have going on, this is not the time to be in financial ruin. Even countries that the U.S. is seemingly in a tussle with have caught wind of the struggle and have used it to their advantage. According to CNBC, as the Middle East conflict reaches week four, Iran has threatened to target buyers of U.S. Treasury bonds, revealing that the Trump administration’s 48-hour ultimatum is close to expiring.
“U.S. Treasury bonds are soaked in Iranians’ blood. Purchase them, and you purchase a strike on your HQ and assets,” Iran’s Parliament speaker Mohammad Bagher Ghalibaf said on X. “Alongside military bases, those financial entities that finance the U.S. military budget are legitimate targets.”
But there are two legislative actions that could save the day regarding the economy.
The bipartisan H.R. 3289, known as the Fiscal Commission Act, sponsored by Rep. Bill Huizenga (R-MI) and Rep. Scott Peters (D-CA) and 41 other elected officials, would force a public reckoning with the facts, trade-offs, and hard decisions required to restore fiscal health. Congress could also mirror Switzerland’s actions and call for an Article V Convention to propose a fiscal responsibility amendment to the U.S. Constitution.
Sponsored by Rep. Jodey Arrington (R-TX), the amendment would mandate a balanced budget over the business cycle and ban federal spending from growing faster than the U.S. economy.
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