The US Treasury Division is now accepting Venmo and PayPal funds from those that wish to donate cash to scale back the nation’s ballooning $36.7 trillion debt.
The digital fee platforms can be utilized after accessing the “Gifts to Reduce the Public Debt” web page on Pay.gov, NPR’s Jack Corbett famous.
The enlargement of fee choices comes amid rising public concern over the debt, which has surged from $19.59 trillion in 2010 to its present stage, a rise of 87%, in accordance with the Treasury Division.
The donation program has existed since 1996, with a complete of $67.3 million contributed — an quantity that continues to be negligible in comparison with the federal debt.
Critics have questioned the worth of particular person donations towards the nationwide debt.
Samson Mow, CEO of Bitcoin expertise agency JAN3, in contrast the hassle to “sending Bitcoin to a burn address.”
President Donald Trump’s not too long ago enacted “Big, Beautiful Bill” is projected so as to add a further $3.4 trillion to the debt over the subsequent decade, in accordance with the non-partisan Congressional Funds Workplace.
The laws prompted a public dispute between Trump and Tesla CEO Elon Musk, who criticized the invoice for elevating the debt ceiling by $5 trillion.
Regardless of the Treasury’s new push for public donations, the size of the debt continues to boost questions in regards to the sustainability of US fiscal coverage and the effectiveness of such symbolic gestures.
In the meantime, Bridgewater Associates founder Ray Dalio is sounding the alarm, warning that the nation is at rising threat of a fiscal disaster except pressing coverage modifications are made.
Dalio has repeatedly likened the mounting debt to “plaque in arteries,” cautioning that the price of servicing the debt is “severely diminishing purchasing power.”
“We are spending 40% more than our income,” he stated, including that “we’re approaching the point where we may need to borrow just to pay the interest on our existing debt — this is the classic debt death spiral.”
In accordance with Dalio, the US is approaching an inflection level the place debt and curiosity obligations might crowd out important authorities spending.
He has known as on lawmakers to scale back the price range deficit from roughly 7% of GDP to three%, a transfer he believes may very well be achieved with a mixture of spending cuts and tax will increase.
Dalio expressed concern over weakening investor confidence, citing falling bond gross sales, a weaker greenback, and rising gold and fairness costs.
“Unless the budget deficit is cut to about 3% of GDP, the supply of debt will be much greater than the demand,” he warned, including that debt service prices will “severely squeeze out the government’s ability to spend.”
Whereas he sees a low threat of a direct disaster, Dalio estimates that the prospect of a monetary “trauma” brought on by a sudden lack of confidence now exceeds 50% if no motion is taken.
He has urged bipartisan cooperation, stating that early intervention is “much cheaper and less painful than waiting for a tipping point.”
Dalio continues to name for “bipartisan practicality and collective sacrifice” to stabilize the fiscal trajectory earlier than it turns into unmanageable.
A Treasury Division spokesperson referred The Put up to feedback made by Treasury Sec. Scott Bessent throughout his testimony earlier than Congress final month.
Bessent, advised lawmakers that the administration’s tax and commerce insurance policies are projected to decrease the federal deficit over the subsequent decade, regardless of skepticism from congressional analysts.
“There’s ‘varying scoring’ of the tax bill,” Bessent stated throughout a Senate Finance Committee listening to. “It is my view that over the 10-year window, it will decrease.”
Whereas noting his disagreement with the Congressional Funds Workplace’s (CBO) methodology, Bessent cited two separate estimates from the company: one on the impression of tax cuts and the opposite on the results of the president’s tariffs. He stated the information exhibits that import duties are anticipated to generate $2.8 trillion in income over 10 years.
“Even in Washington DC math, that is a $400 billion surplus,” Bessent stated.
“You can’t take one without the other,” he advised Sen. Elizabeth Warren (D-Mass.), emphasizing that the CBO analyses have to be thought-about collectively.
In an interview final week with Fox Enterprise anchor Maria Bartiromo, Bessent added that the administration had already collected practically $100 billion in tariff income thus far this 12 months and is “on track for $300B this year.”
He famous that this quantities to “almost 1% of GDP.”
Bessent additionally pointed to latest fiscal developments as an indication of enchancment.
“June delivered a budget surplus with higher revenue and lower spending,” he stated.
“This is how we clean up the fiscal mess we inherited,” Bessent asserted.
