Ninety state financial officials reportedly are calling on President Donald Trump and Congress to confront what they warn is a spiraling national debt crisis, urging Washington to adopt a comprehensive plan by July 4, 2026 — the nation's 250th anniversary — to put the federal government on course for a balanced budget.
In a letter obtained by the New York Post, treasurers, state lawmakers, and governors — including officials from Arizona, Pennsylvania, Texas, and Indiana Republican Gov. Mike Braun — warned that with the national debt already surpassing $38 trillion, the United States is approaching what they called "a painful age of reckoning."
"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," the officials wrote, stressing that younger Americans need time to prepare for needed reforms, while seniors require reassurance that benefits will remain intact.
The letter also urged Trump to cut red tape, expand domestic production of natural resources, and roll back federal strings attached to state funding.
While the officials praised Elon Musk's Department of Government Efficiency for eliminating thousands of federal positions, they urged the administration to take even more aggressive steps to rein in federal bloat.
"The federal government caused this crisis … so now the states are sounding the alarm," OJ Oleka of the State Financial Officers Foundation said, adding that Trump has shown he is willing to take "bold action" to solve big problems.
The officials also warned that current debt levels threaten the future of Social Security, Medicare, and Medicaid. Citing Congressional Budget Office data, the letter said Social Security trust funds could become insolvent by 2033, triggering benefit cuts averaging $16,500 per couple.
The fiscal warning comes as Trump continues promoting his proposal to send Americans $2,000 "tariff dividend" checks funded by revenue from his sweeping import tariffs.
Trump has said tariff revenue is more than sufficient to support both deficit reduction and direct relief for middle-income earners.
"If we didn't have tariffs, this country would be in serious trouble," the president said Monday, noting that tariff revenues have surged to $195 billion so far this fiscal year.
However, Axios reported that Senate Republicans are skeptical. GOP senators including Majority Leader John Thune, R-S.D.; Sen. Shelley Moore Capito, R-W.Va.; Sen. Bernie Moreno, R-Ohio; and Sen. John Kennedy, R-La., have argued that tariff revenue should go toward deficit reduction, not new spending.
"I'm not nuts for it," Sen. Kevin Cramer, R-N.D., said, warning that the checks could be inflationary and likely require congressional approval.
Treasury Secretary Scott Bessent suggested Sunday that legislation would likely be required and emphasized that Trump remains focused on policies benefiting working Americans, including tax relief on tips, overtime, and Social Security income.
With pressure mounting from state leaders and fiscal conservatives, the debt debate is rapidly becoming one of the defining economic battles of Trump's second term and one that could shape the nation's financial trajectory well beyond 2026.
© 2025 Newsmax. All rights reserved.