US Debt Crisis Deepens as Government Spending on Seniors Hits Record High

The United States is facing a worsening debt crisis, with government obligations reaching unprecedented levels. The Supreme Court has recently ruled President Donald Trump’s reciprocal tariffs on various countries as illegal, raising concerns over the country’s fiscal stability.

Rising Debt and Social Security Burden
The federal government’s debt has now crossed $37 trillion. Spending on Social Security programs for seniors has reached a record 9.4% of GDP, up from around 6% in the 1980s—a 56% increase over the past four decades. Analysts predict this could rise further to 11% of GDP in the next ten years.

The surge in expenditure is primarily driven by rising healthcare costs and an aging population. With life expectancy approaching 80 years, retirees are drawing benefits for longer periods. Interest payments and Social Security programs remain the largest contributors to the federal budget deficit. Experts warn that without policy reforms, seniors could face a shortfall in Social Security benefits as early as 2032.

Impact of the Supreme Court Ruling
President Trump had imposed reciprocal tariffs on multiple countries, which had bolstered government revenues. However, with the Supreme Court declaring these tariffs illegal, the fiscal outlook has worsened. In January, the budget deficit fell 26% from the previous year to $95 billion. During the first four months of fiscal year 2026, the federal deficit was down 17% from last year, totaling $697 billion, yet concerns remain over long-term sustainability.

The ruling has implications not only for government finances but also for ongoing trade negotiations between the United States and other countries, including India, which may now face delays or revisions in agreements.