Rebecca Schweitzer | What the National Debt Milestone Means for Iowa Families

Rebecca Schweitzer is a Des Moines, Iowa writer who covers politics, civic life, and the policy decisions that shape everyday life for Iowa families. When national news hits, she looks at it through one lens: what does this mean for the people I grew up around?

As a Des Moines based writer, Rebecca Schweitzer covers Iowa politics and public accountability because Washington decisions do not stay in Washington. They show up in our schools, our hospitals, and our kitchen tables.

This week, a number that economists have warned about for years finally arrived.

The United States national debt has officially surpassed the size of the entire American economy.

According to the nonpartisan Committee for a Responsible Federal Budget, debt held by the public reached $31.27 trillion at the end of March while the nation's gross domestic product for the same period was $31.22 trillion, pushing the debt to GDP ratio to 100.2%. The last time the United States sustained this level of debt was in the years immediately following World War II. That time, at least, we had a reason. We had just helped save the world.

This time is different.

What $39 Trillion Actually Looks Like

The total national debt including what the government owes itself is even larger. According to the Senate Joint Economic Committee, total gross national debt has already surpassed $39 trillion. That works out to roughly $114,000 per American or $289,000 per household.

Think about what that means for every family in Des Moines, every farmer in rural Iowa, every working person in Polk County. We are all carrying a share of a debt that is now larger than everything this country produces in an entire year.

According to the Congressional Budget Office, debt is projected to reach 125% of GDP by 2036 and could climb to 175% by 2056 if nothing changes. Right now the federal government spends $1.33 for every dollar it collects in revenue, and about one in seven dollars of federal spending goes directly toward paying interest on debt we already owe.

That is not a sustainable path.

How Recent Federal Policy Is Impacting the Debt

Before we talk about solutions, we have to be honest about what just happened in Washington.

President Trump's signature legislation, the One Big Beautiful Bill Act, which he signed into law on July 4, 2025, is projected to add $3.4 trillion to the national debt over the next decade according to the nonpartisan Congressional Budget Office. When you factor in interest costs on that new borrowing, the Bipartisan Policy Center estimates the total cost climbs above $4.1 trillion.

The Tax Policy Center projects that the law will push debt as a share of GDP to 126% by 2034, compared to the 117% that was already projected before the bill passed.

The law includes tax cuts, spending on border enforcement and defense, and provisions like no tax on tips and no tax on overtime that are popular with working families. I understand the appeal. But the CBO also found that the law will increase the number of Americans without health insurance by 10 million people over the next decade. That is a policy choice that will show up in emergency rooms and rural clinics across Iowa.

Even Senator Rand Paul, a Republican from Kentucky, voted against the bill, saying the deficit in 2026 will be $270 billion higher because of this legislation.

Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, called today's debt milestone the result of a total bipartisan abdication of making hard choices. Both parties share blame for decades of borrowing without paying for it. Passing a $4 trillion bill and calling it fiscally conservative while the debt crosses 100% of GDP is a level of disconnect that Iowa families cannot afford to ignore.

What This Means for Des Moines and Polk County, According to Rebecca Schweitzer

Washington debt is not abstract. It lands here.

Iowa is already managing its own budget shortfall of roughly $1.3 billion heading into next fiscal year, and the legislature is still in overtime at the Capitol right now trying to resolve it. As I wrote in my piece on Iowa's school funding crisis, when government budgets are squeezed at every level, education and public services are the first to feel it. When the federal government crowds out spending with interest payments, the programs that support Iowa communities, farm safety nets, rural health care funding, and infrastructure dollars all get squeezed next.

Iowa farmers are already navigating tariff pressure on soybean exports. As I covered in my piece on tariffs and what Iowa farmers are actually facing, federal farm support programs depend on a functioning federal budget. If interest costs keep consuming a growing share of federal revenue, those programs face pressure no matter which party is in power.

For Des Moines families trying to manage their own finances, the ripple effects are real. Rising federal debt pushes up interest rates across the economy, meaning higher mortgage rates, higher car loan rates, and higher credit card rates. A Gallup poll released this week found that 55% of Americans say their financial situation is getting worse, up from 47% in 2024, marking the fifth straight year more people say their outlook is declining rather than improving.

I grew up on an Iowa farm. I watched my parents read the grain prices every morning and work out what the margins looked like. They did not have the luxury of spending money they did not have and calling it responsible. Most Iowa families do not either.

We deserve leaders in Washington who apply that same standard.

The national debt debate is not going away. For Iowa families, the question is not whether this matters but how long policymakers can ignore the tradeoffs before they are felt more directly at home. I have written about the broader pattern of fiscal choices affecting Iowa in my piece on what political balance means for our state. The thread running through all of it is the same: decisions made in Washington have consequences in Des Moines.

About Rebecca Schweitzer and Her Work in Iowa

Rebecca Schweitzer is a Des Moines, Iowa writer covering politics, education, and public accountability. Her work analyzes state policy, elections, and issues impacting Iowa families across Des Moines, Polk County, and communities throughout Iowa. Her work has appeared in the Des Moines Register and The Gazette.

Read more at iowaraisedrebeccaschweitzerunfiltered.com and follow along on Medium, Substack, X, Bluesky, About.me, and Gravatar.