ALEC & SFOF Letter to the President and Congress on our National Debt Crisis
To: President Trump and Members of Congress
From: Governors, Legislatures and State Financial Officers
Subject: National Debt Crisis and Our Support
“America is at its best when it does the impossible.” – President Donald J. Trump
We have come together as governors, state legislators and state financial officers to support President Trump and Congress in restoring our country’s fiscal solvency. The national debt represents one of the most urgent and consequential challenges facing our nation. We ask that this matter be given top priority due to the threat it poses to the financial stability of the United States, the dollar as the reserve currency and our position of global leadership.
We agree with Senate Resolution 600 from the 118th Congress, which received unanimous support declaring that the national debt is a "national security threat" and that deficit spending is “unsustainable, reckless and dangerous.”
In July 2026, we will celebrate our country’s 250th anniversary of the Declaration of Independence. However, with the national debt exceeding $38 trillion, at $111,000 per citizen, the foundations of our financial independence are steadily eroding, posing a serious threat to the nation’s long-term economic stability.
Our ability to service the debt is waning. Annual interest payments now surpass each of the annual budgets of the United States Military and Medicare. Without decisive action, the cost of debt service is projected to surpass the annual expenditures for Social Security.
Absent substantial legislative action, we are facing the near-term reality that Social Security trust funds will become insolvent in 2033, likely resulting in more than a 20% reduction that equates to a $16,500 decrease of benefits on average per couple. Moreover, a financial crisis for Medicare and Medicaid will surely follow.
This is cause for us to move from internal discussions of concern to public action. Our call is for the citizens of our states to come together to support you in the imperative work of governing with balanced budgets and bringing the debt-to-gross domestic product ratio down to a manageable level. Only once before, after World War II, has this ratio exceeded 100%. But back then, it was followed by a peacetime financial recovery, allowing us to prepare for the next great challenge. Today, we face soaring debt with no end in sight.
Without a decisive change in course, we will not only face a very painful day of reckoning, but a painful age of reckoning we never want to see. That means everything needs to be on the table, including changes to ensure the long-term viability of critical programs and overall financial sustainability. Younger citizens of our states need a solid runway to prepare for changes, while our oldest and most vulnerable citizens need assurances.
In our time, we must come together so our children and grandchildren do not go off the fiscal cliff with debt we cannot pay. A long-term plan for debt reduction is essential, and our states stand firmly behind you in setting the vision to restore the financial strength of our nation. We ask that a plan be approved through the legislative process by the significant date of July 4, 2026, to set America on a dedicated path to restore financial independence.
To that end, we commend your work to review and ratify the cuts to fraud, waste and abuse identified through the Department of Government Efficiency. However, the gravity of this situation calls for additional action. In November, 2024, 37 members of the National Debt Crisis Task Force of state financial officers sent Congress a letter with calls to action. Now we, as governors and state legislators, joining the state financial officers, make the below calls together. We urge the President and Congress to do the following:
For the sake of our country and future generations, we are working to build support for the momentous work to tackle the deficit and debt. May our 250th Anniversary of Independence not be marred by fiscal distress but marked by a renewed resolve across America to restore our country’s fiscal strength and solvency.
From: Governors, Legislatures and State Financial Officers
Subject: National Debt Crisis and Our Support
“America is at its best when it does the impossible.” – President Donald J. Trump
We have come together as governors, state legislators and state financial officers to support President Trump and Congress in restoring our country’s fiscal solvency. The national debt represents one of the most urgent and consequential challenges facing our nation. We ask that this matter be given top priority due to the threat it poses to the financial stability of the United States, the dollar as the reserve currency and our position of global leadership.
We agree with Senate Resolution 600 from the 118th Congress, which received unanimous support declaring that the national debt is a "national security threat" and that deficit spending is “unsustainable, reckless and dangerous.”
In July 2026, we will celebrate our country’s 250th anniversary of the Declaration of Independence. However, with the national debt exceeding $38 trillion, at $111,000 per citizen, the foundations of our financial independence are steadily eroding, posing a serious threat to the nation’s long-term economic stability.
Our ability to service the debt is waning. Annual interest payments now surpass each of the annual budgets of the United States Military and Medicare. Without decisive action, the cost of debt service is projected to surpass the annual expenditures for Social Security.
Absent substantial legislative action, we are facing the near-term reality that Social Security trust funds will become insolvent in 2033, likely resulting in more than a 20% reduction that equates to a $16,500 decrease of benefits on average per couple. Moreover, a financial crisis for Medicare and Medicaid will surely follow.
This is cause for us to move from internal discussions of concern to public action. Our call is for the citizens of our states to come together to support you in the imperative work of governing with balanced budgets and bringing the debt-to-gross domestic product ratio down to a manageable level. Only once before, after World War II, has this ratio exceeded 100%. But back then, it was followed by a peacetime financial recovery, allowing us to prepare for the next great challenge. Today, we face soaring debt with no end in sight.
Without a decisive change in course, we will not only face a very painful day of reckoning, but a painful age of reckoning we never want to see. That means everything needs to be on the table, including changes to ensure the long-term viability of critical programs and overall financial sustainability. Younger citizens of our states need a solid runway to prepare for changes, while our oldest and most vulnerable citizens need assurances.
In our time, we must come together so our children and grandchildren do not go off the fiscal cliff with debt we cannot pay. A long-term plan for debt reduction is essential, and our states stand firmly behind you in setting the vision to restore the financial strength of our nation. We ask that a plan be approved through the legislative process by the significant date of July 4, 2026, to set America on a dedicated path to restore financial independence.
To that end, we commend your work to review and ratify the cuts to fraud, waste and abuse identified through the Department of Government Efficiency. However, the gravity of this situation calls for additional action. In November, 2024, 37 members of the National Debt Crisis Task Force of state financial officers sent Congress a letter with calls to action. Now we, as governors and state legislators, joining the state financial officers, make the below calls together. We urge the President and Congress to do the following:
- Implement a concrete plan to put the federal government on a path to a balanced budget as soon as possible.
- Unleash economic prosperity by cutting red tape and tapping into our nation’s vast natural resources with a timeline for reducing the debt that is empowered by a growing economy.
- Evaluate how to maximize taxpayer savings by rolling back the costly and burdensome requirements that accompany federal funds sent to states. In return, we are empowered to increase efficiency, innovation and positive outcomes in the use of these dollars.
For the sake of our country and future generations, we are working to build support for the momentous work to tackle the deficit and debt. May our 250th Anniversary of Independence not be marred by fiscal distress but marked by a renewed resolve across America to restore our country’s fiscal strength and solvency.
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