In light of Moody’s recent downgrade of the U.S. credit rating—joining S&P and Fitch in stripping the federal government of its AAA status —Truth in Accounting reiterates its longstanding concerns about the nation's fiscal health. For the seventh consecutive year, our Financial State of the Union report has assigned the federal government an “F” grade, reflecting a deep-seated financial burden.
According to our 2025 report, the U.S. government's true debt has escalated to $158.6 trillion, translating to a staggering $974,000 burden per federal taxpayer. This figure encompasses not only the publicly reported debt but also unfunded obligations such as $67.1 trillion in Medicare and $51.6 trillion in Social Security benefits, liabilities excluded from official balance sheets.
The recent credit downgrade underscores the consequences of persistent deficit spending and reliance on economic growth projections to offset fiscal imbalances. As highlighted in a recent Reason article, the downgrade serves as a stark warning that the U.S. can no longer depend on borrowing its way to prosperity.
Truth in Accounting advocates for transparent and honest accounting practices that accurately report all liabilities. Through comprehensive fiscal reform and accountability, the nation can hope to restore its financial integrity and secure a stable economic future.