June 17, 2025

Is It Time to Worry About the National Debt?

government building on top of mountain

As headlines highlight rising federal deficits—with government spending around $7 trillion and revenue at $5 trillion—some investors are asking whether this trend should be a concern.


While it's true that a growing national debt can present challenges if left unaddressed, the U.S. still benefits from strong fundamentals: a dynamic economy, favorable demographics compared to other developed nations, and global demand for U.S. assets. The Congressional Budget Office projects the debt-to-GDP ratio will reach 100% by 2025, rising to 118% by 2035. However, the U.S. has options, including fiscal reforms, economic growth initiatives, and immigration policy improvements, that could help manage debt sustainably over time. If you're wondering what this could mean for your portfolio, your advisor can help you evaluate the potential impact and stay aligned with your long-term goals.

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About the Author

Kevin Grogan

Chief Investment Officer of Systematic Strategies

As Chief Investment Officer of Systematic Strategies for Focus Partners, Kevin conducts investment research and writes articles on a wide range of topics, including retirement planning and investment policy. Kevin co-authored "The Only Guide You’ll Ever Need for the Right Financial Plan" with Larry Swedroe and Tiya Lim. This step-by-step handbook focuses on the art of investing by providing investors with information they can use to build a tailor-made investment strategy. Kevin holds an MBA from Saint Louis University and a bachelor’s of science in finance from Missouri State University in Springfield.