Washington: The US national debt has surpassed $39 trillion, posing a potential threat to raise borrowing costs for households and businesses while increasing pressure on federal retirement programs. This development comes from a report released Tuesday by the Conference Board.

According to Anadolu Agency, the debt now amounts to approximately $116,000 per American, based on the US population as of July 2026, as stated in the nonprofit business research group's report titled "How the National Debt Affects All Generations of Americans." The study modeled five fiscal scenarios and explored how variations in deficits, interest rates, and financial stability could impact students financing their education, families buying homes, retirees depending on Social Security, and small-business owners seeking funding.

The report concluded that reducing budget deficits could lower borrowing costs and improve the country's fiscal outlook, whereas larger deficits and financial shocks could significantly increase the cost of student loans, mortgages, and business financing. Under a scenario involving a weeklong US debt default, small-business loan payments could surge by 21.6%, modeled student-loan costs by 8.7%, and housing costs by up to 6.7%.

David Young, president of the Conference Board's CEO Center, emphasized that the national debt extends beyond a mere figure on the government's balance sheet and affects the financial decisions Americans make daily. He noted that higher debt could translate to higher borrowing costs, fewer resources for national priorities, and greater uncertainty surrounding retirement programs.

Projections from the report indicate that the national debt will reach 154% of gross domestic product by 2036 under its baseline scenario and 180% under a higher-deficit scenario. Additionally, the report warned that the main trust fund used to pay Social Security retirement benefits is projected to become insolvent in 2032. If Congress allows benefits to fall to the amount supported by incoming program revenue, retirees could face a 7% benefit cut in 2032 and average annual reductions of 28% between 2033 and 2036.

Alternatively, maintaining scheduled benefits through transfers from the Treasury's general fund would require an estimated $2.7 trillion between 2032 and 2036, potentially further increasing federal deficits. The Conference Board recommended forming a bipartisan congressional fiscal commission, implementing comprehensive Social Security reforms, modernizing Medicare, and improving the federal budget process.