The U.S. Department of the Treasury released its Financial Report of the United States Government for fiscal year 2025, displaying a stark negative net position of $41.72 trillion as of September 30, 2025.

The consolidated balance sheet listed total assets at $6.06 trillion and total liabilities at $47.78 trillion. This marked a deterioration of nearly $2.07 trillion from the previous fiscal year, excluding the Statement of Social Insurance.

Economists Steve H. Hanke of Johns Hopkins University and David M. Walker, former U.S. Comptroller General, analyzed the report in a Fortune article published March 23. They concluded the figures demonstrate the U.S. government is insolvent, noting the media's limited coverage.

The report, audited in accordance with federal standards, includes federal entities and reflects accrual accounting. It excludes the value of sovereign powers such as taxation authority and monetary policy, which some analysts argue differentiates government balance sheets from private entities.

Treasury Secretary Scott Bessent introduced the document with a message dated March 19. The report also highlighted a widening 75-year fiscal gap, rising from 4.3% of GDP in fiscal year 2024 to 4.7% in 2025.

Separate projections in the Statement of Social Insurance indicated additional long-term obligations, including $88.4 trillion for Social Security and Medicare, pushing total commitments higher.

The release comes amid ongoing debates over federal spending and debt, with public debt exceeding $39 trillion earlier this month. No official Treasury statement has addressed the insolvency interpretations.

Hanke and Walker called for urgent action, proposing a fiscal commission and a constitutional debt brake similar to Switzerland's model. The report underscores persistent challenges in federal budgeting and long-term sustainability.