US Unfunded Liabilities for Social Security and Medicare Reach $78.3 Trillion, Fueling Intergenerational Fiscal Debate

A recent social media post by Aaron M. Renn on July 18, 2025, ignited discussions on the escalating U.S. public debt and unfunded liabilities, directly linking these fiscal burdens to the senior citizen demographic, often referred to as Baby Boomers. Renn's tweet stated, > "Also worth keeping in mind: Senior Citizens = Boomers. The same people who racked up massive public debt and unfunded liabilities don’t want to pay for them ever." This statement underscores a growing concern regarding intergenerational fiscal responsibility and the long-term sustainability of federal programs.

The national debt, representing the accumulated borrowing by the U.S. federal government, stood at approximately $36.56 trillion as of March 6, 2025. Projections from the Congressional Budget Office (CBO) indicate that federal debt held by the public is set to climb from 100% of GDP in 2025 to 118% by 2035, surpassing its post-World War II peak. Alarmingly, interest payments on this debt have already exceeded spending on both Medicare and national defense in 2024, highlighting the increasing strain on the federal budget.

Beyond the explicit national debt, the nation faces even larger "unfunded liabilities," which are future financial obligations lacking sufficient dedicated revenue streams. According to the 2024 Financial Report of the United States Government (released February 2025), the total unfunded obligation for social insurance programs, primarily Social Security and Medicare, is approximately $78.3 trillion over a 75-year projection period. Specifically, Social Security's unfunded obligation is around $25.4 trillion, while Medicare's is a staggering $52.8 trillion, with both programs projected to be unable to pay 100% of scheduled benefits in the coming decades without legislative changes.

This immense fiscal imbalance raises profound questions about intergenerational equity, as future generations are poised to bear the brunt of these commitments through higher taxes, reduced government services, and potentially slower economic growth. Experts, including Federal Reserve Chairman Jerome Powell, have warned that the U.S. is on an an "unsustainable fiscal path," effectively "borrowing from future generations." Addressing this challenge will require difficult policy choices, likely involving a combination of entitlement reforms, increased revenue, and sustained economic growth to stabilize the nation's financial future.