Washington: U.S. President Donald Trump on Sunday said his administration is investigating potential fraud in U.S. Treasury debt payments, suggesting that the country’s $36 trillion debt might not be as high as officially reported.
Speaking to reporters aboard Air Force One, Trump stated that officials scrutinizing government spending had expanded their probe to include Treasury payments, which play a crucial role in the global financial system.
“We’re even looking at Treasuries,” Trump said. “There could be a problem—you’ve been reading about that—with Treasuries, and that could be an interesting problem.”
He further suggested that fraudulent activities could be inflating the debt figures. “It could be that a lot of those things don’t count. In other words, some of that stuff that we’re finding is very fraudulent. Therefore, maybe we have less debt than we thought.”
It remains unclear whether Trump was referring to debt service payments or other financial obligations managed by the Treasury Department.
Debt Crisis and Republican-Led Spending Scrutiny
The United States currently holds $36.2 trillion in public debt, equivalent to over 120% of GDP, according to the U.S. Treasury. With federal spending exceeding revenue, Trump and congressional Republicans must authorize further borrowing this year to prevent a default that could trigger economic turmoil.
Despite Trump’s claims of inflated debt figures, independent budget analysts warn that his proposed tax cuts would significantly increase the deficit.
Elon Musk’s Role in Government Overhaul Sparks Legal Battle
Trump has enlisted billionaire Elon Musk to spearhead a sweeping overhaul of federal agencies through the newly formed “Department of Government Efficiency”. The move has led to widespread protests in Washington and accusations of potential legal violations by the administration.
Musk’s team has disrupted operations at multiple federal agencies, raising concerns over privacy and security while reviewing payroll and spending records. On Saturday, a federal judge temporarily blocked Musk’s access to government financial systems, citing risks of improper data exposure.
Following the ruling, Musk called for a “do-not-pay list” of entities ineligible for government funds to be updated at least weekly, if not daily.
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Treasury Secretary Scott Bessent, appointed by Trump, defended Musk’s role, stating last week that his team had “read-only” access to payment systems, meaning they could review transactions but not alter them.
Federal Funding Freeze Hits Public Services
Trump’s broader push to halt domestic aid spending has faced legal challenges, but project managers nationwide report that billions of dollars have already been withheld from clean energy and transportation initiatives.
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Health clinics in multiple states have also reported layoffs and closures due to a lack of federal funding, underscoring the ongoing tensions surrounding Trump’s fiscal policies.
