The latest report from the U.S. Department of the Treasury shows that the U.S. government is, in fact, insolvent.

According to the consolidated financial statements for fiscal year 2025 released by the Treasury last week, as of September 30, 2025, the federal government's total assets amounted to $6.06 trillion, while its total liabilities reached $47.78 trillion.

However, this figure is actually incomplete. The reported $47.78 trillion in liabilities do not include unfunded obligations for major social insurance programs such as Social Security and Medicare, which are separately listed in the "Social Insurance Statements."

Even without accounting for these off-balance-sheet liabilities, the government's financial condition deteriorated by nearly $2.07 trillion between fiscal years 2024 and 2025, resulting in a net liability of $41.72 trillion. The total liabilities are now nearly eight times the officially reported assets. The primary reasons are a $2 trillion increase in federal debt and accrued interest, reaching $30.33 trillion; and a $43.88 billion increase in benefits owed to federal employees and veterans, bringing the total to $15.47 trillion.

Looking ahead over the long term, the situation is even more dire. The 75-year unfunded social insurance obligations increased by $10.1 trillion within just one year—from $78.3 trillion in fiscal year 2024 to $88.4 trillion in fiscal year 2025. Most of this growth stems from an expected $6.9 trillion increase in the funding shortfall for Medicare Part B, and a $2.5 trillion rise in Social Security obligations. The U.S. Treasury’s “Long-Term Fiscal Outlook Statement” also indicates that the 75-year fiscal gap as a share of GDP will expand from 4.3% in fiscal year 2024 to 4.7% in fiscal year 2025.

If we add the $88.4 trillion in long-term unfunded debt to the official $47.8 trillion in balance sheet liabilities, the total federal debt would exceed $136.2 trillion—approximately five times the U.S. annual GDP.

Original source: toutiao.com/article/1860631199597580/

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