Trending Now - U.S. Treasury Warns of Insolvency Amid $47 Trillion Debt Crisis
WHO:
Steve H. Hanke, professor of applied economics
David M. Walker, former comptroller general of the United States
U.S. Treasury Department
WHAT:
The U.S. government's total assets were reported as $6.06 trillion and total liabilities as $47.78 trillion as of September 30, 2025.
The government's consolidated balance sheet position, excluding social insurance programs, showed a negative $41.72 trillion.
The authors of the FORTUNE article stated, "Insolvency is when you can’t pay your bills when they’re due."
The U.S. government's total assets were reported as $6.06 trillion and total liabilities as $47.78 trillion as of September 30, 2025.
The government's consolidated balance sheet position, excluding social insurance programs, showed a negative $41.72 trillion, deteriorating by nearly $2.07 trillion from fiscal year 2024 to fiscal year 2025.
Federal debt and interest payable increased by $2 trillion, now totaling $30.33 trillion.
Federal employee and veteran benefits payable increased by $438.8 billion, now totaling $15.47 trillion.
The U.S. Treasury declared the United States government insolvent.
As of September 2025, the U.S. government had total assets of $6 trillion and total liabilities of $47 trillion.
WHERE:
United States
WHEN:
The financial statements were released in September 2025.
The declaration of insolvency was reported on March 23rd, 2026.
WHY:
The authors argue that Congress has lost control of the nation’s finances, leading to a fiscal catastrophe.
The authors of the FORTUNE article, Steve H. Hanke and David M. Walker, argue that Congress has lost control of the nation’s finances, leading to a fiscal catastrophe.
The conclusion of insolvency was drawn directly from the Treasury Department’s consolidated financial statements.
HOW:
The authors suggested a “Fiscal Commission Act” proposed in Congress to force a public reckoning with the facts and trade-offs necessary for restoring fiscal health.
The assessment of insolvency was based on the comparison of total assets and total liabilities as reported in the financial statements.
(UPDATED March 24, 2026 11:29 UTC)
Today, Steve H. Hanke and David M. Walker highlighted alarming figures regarding the U.S. government's finances, reporting total assets of $6.06 trillion against total liabilities of $47.78 trillion as of September 30, 2025. They emphasized a concerning consolidated balance sheet position, which shows a negative $41.72 trillion, and noted that Congress has lost control of the nation’s finances, leading to a potential fiscal catastrophe. To address this issue, the authors proposed a “Fiscal Commission Act” aimed at prompting a public reckoning about the necessary trade-offs for restoring fiscal health.
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(UPDATED March 24, 2026 04:13 UTC)
Today, the U.S. government's financial position has been reported with total assets at $6.06 trillion and total liabilities soaring to $47.78 trillion as of September 30, 2025. The consolidated balance sheet, excluding social insurance programs, shows a staggering negative balance of $41.72 trillion, worsening by nearly $2.07 trillion from the previous fiscal year, while federal debt and interest payable have climbed to $30.33 trillion. Authors Steve H. Hanke and David M. Walker from FORTUNE argue that Congress has lost control of the nation’s finances, setting the stage for a potential fiscal catastrophe.
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(UPDATED March 23, 2026 23:43 UTC)
Today, the U.S. Treasury Department declared the United States government insolvent, a significant announcement made on March 23, 2026. This conclusion comes after a review of financial statements released in September 2025, which showed total assets of $6 trillion against total liabilities of $47 trillion. The assessment of insolvency was determined by comparing these figures, highlighting a stark financial imbalance.