Tackling the $38T Debt: Bipartisan Commission Gains Urgent Backing

NEW YORK, NY – February 17, 2026 – As the United States' national debt surges past a staggering $38 trillion, a prominent business-led policy group is sounding the alarm, calling for immediate bipartisan action to avert a looming fiscal catastrophe that threatens the nation's economy, retirement security, and global standing.

In a new report released today, the Committee for Economic Development (CED), the public policy center of The Conference Board, urges Congress to establish a bipartisan fiscal commission. The proposed body would be tasked with the monumental challenge of stabilizing the country's finances, reining in the unsustainable debt-to-GDP ratio, and securing the future of Social Security and Medicare, which face insolvency within the next seven years.

The urgency is underscored by alarming figures. The national debt swelled by over $2 trillion in 2025 alone, with the federal budget deficit hitting $1.8 trillion. For the first time since the aftermath of World War II, the debt held by the public now equals the size of the entire U.S. economy.

"America's debt trajectory is unsustainable, and the costs of inaction are rising," said David K. Young, President of CED, in the report's announcement. "A bipartisan fiscal commission offers a credible, structured path forward—one that brings lawmakers together to make difficult but necessary choices, restores confidence in our fiscal outlook, and preserves economic opportunity for future generations."

The Anatomy of a Crisis

The $38 trillion figure, while abstract, is the culmination of decades of policy choices, economic shocks, and demographic shifts. The federal government has operated at a deficit every year since 2002, with debt accumulation accelerating dramatically in recent years. Trillions in emergency spending during the COVID-19 pandemic, combined with major tax cuts and consistent increases in government spending, have created a perfect storm for fiscal imbalance.

This isn't just a matter of government accounting; it has profound implications for the nation's future. According to the Congressional Budget Office (CBO), under current policies, federal debt is projected to soar to 166% of GDP by 2054. This relentless growth is driven primarily by two powerful forces: rising interest costs and mandatory spending on programs like Social Security and Medicare.

As the population ages and healthcare costs climb, spending on these bedrock entitlement programs is set to outpace economic growth for the foreseeable future. The trust funds that support them are on a path to depletion within a decade, threatening benefits for tens of millions of Americans without significant reform. Simultaneously, the cost of servicing the existing debt is exploding. Net interest payments have become the second-largest line item in the federal budget, surpassing spending on national defense and Medicare, and are on track to become the single largest federal expenditure by mid-century.

A Looming Economic Storm

The consequences of this unchecked debt extend far beyond the federal budget, threatening to create a drag on the entire U.S. economy. International bodies like the International Monetary Fund (IMF) have issued stark warnings, flagging America's fiscal policy as a "significant risk" to the global economy that could fuel inflation and drive up borrowing costs worldwide.

For American households and businesses, the effects are already becoming tangible. As the government borrows more, it competes for capital, which can "crowd out" private investment and lead to higher interest rates. This makes it more expensive for families to get mortgages, for entrepreneurs to secure loans for new businesses, and for established companies to invest in growth and hiring. The CBO projects that the growing debt will slow overall economic growth and suppress wage growth over the long term.

Furthermore, the nation's ballooning debt limits its "fiscal space"—the ability to respond to future emergencies. Should another pandemic, financial crisis, or major geopolitical conflict arise, policymakers could find their hands tied, unable to deploy the resources needed to protect the country and the economy. This growing vulnerability also poses a risk to the U.S. dollar's long-held status as the world's primary reserve currency, a position that affords the nation significant economic and geopolitical advantages.

A Familiar Path with Uncertain Footing

The call for a fiscal commission is not new. It represents a well-trodden, if challenging, path in American politics. Proponents point to the 1983 Greenspan Commission, which successfully forged a bipartisan compromise to shore up Social Security for decades. That commission's success, however, stands in contrast to more recent, less fruitful efforts.

The 2010 Bowles-Simpson Commission, for example, produced a comprehensive and ambitious deficit-reduction plan but ultimately failed to garner enough political support in a deeply polarized Congress for a floor vote. A year later, a congressional "Super Committee" tasked with finding $1.5 trillion in savings collapsed in partisan disagreement. These examples serve as a sobering reminder that simply forming a commission is no guarantee of success.

Despite this history, momentum for a new attempt is building. The CED's proposal echoes several active legislative efforts in Congress, including the bipartisan Fiscal Commission Act, which advanced out of the House Budget Committee in 2024. This bill, co-sponsored by members of both parties, would create a 16-member commission of lawmakers and outside experts. Its recommendations would require a bipartisan majority vote to trigger an expedited, up-or-down vote in Congress, a mechanism designed to bypass procedural gridlock.

The Political Willpower Test

The central challenge for any new commission will not be identifying solutions—economists and policy experts have a menu of options, including spending reductions, tax revenue increases, and reforms to entitlement programs—but rather forging a political consensus to enact them. The CED report highlights that 68% of voters and 87% of business leaders support the creation of a commission, indicating broad public desire for action.

However, public opinion becomes far more fractured when it comes to specific remedies. Polling consistently shows that while Americans are deeply concerned about the debt, majorities oppose cuts to popular programs like Social Security and Medicare. There is stronger support for raising taxes on corporations and high-income households, but this approach faces stiff political opposition.

This disconnect between the desire for fiscal responsibility and the willingness to accept the necessary sacrifices is the tightrope that a commission must walk. Success will require lawmakers to move beyond partisan talking points and engage in good-faith negotiations over politically sensitive issues. The CED's framework emphasizes the need for collaboration, transparency, and a robust public education campaign to build the political will necessary for Congress to pass and enforce difficult but essential reforms. The nation's fiscal future may depend on whether this latest call to action can finally break the cycle of inaction.