Editor’s note: Indiana Comptroller Elise M. Nieshalla asked The Hamilton County Reporter to publish the following letter, written by her and 36 other state financial officers across America. The letter was addressed to Members of Congress, including Speaker Mike Johnson of Louisiana.
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We, the undersigned 37 state financial officers, are responsible for overseeing key elements of our states’ fiscal wellbeing, and we have grave concerns regarding the national debt. We concur with Senate Resolution 600 and House Resolution 190, which declare the deteriorating federal fiscal situation is “unsustainable, irresponsible and dangerous,” as well as a “national security threat.” It gives us great pause that we are speaking of our nation, which serves as the beacon of freedom and opportunity for the world.
Balancing the budget and reducing spending are among the most difficult, yet essential, actions you could take. That is why we have come together to support you in making these critical decisions. We are committed to raising awareness of the debt crisis in our states and rallying support for Congress to develop and implement a long-term plan to restore America’s financial solvency.
The following facts are deeply concerning:
- In FY2023, the federal government collected $4.5 trillion in revenue and had expenditures of $6.3 trillion.
- The cost of servicing the debt in FY2024 increased 30 percent from FY2023 to over $1 trillion this year – more than the annual cost of Medicare ($839 billion) and of the military ($820 billion) (See gov/publication/59727.)
- The national debt is $36 trillion and increasing by nearly $2 trillion per year. (It took 205 years for our country to accumulate its first trillion dollars in debt.)
Coupled with higher interest rates, the nearly 50 percent increase since 2019 in federal spending, that has continued well beyond the public health emergency, has drastically accelerated the deterioration of our nation’s fiscal position.
This is a crisis many decades in the making, with responsibility shared by both parties. Solving it will be a generational challenge. Not solving the problem presents high risk that our creditors will question America’s financial stability, the dollar will be replaced as the reserve currency, and we will lose our nation’s status as the global leader. To prevent this looming day of reckoning, which could easily occur within our and our children’s lifetimes, requires a commitment to begin addressing this situation “Day One.”
This upcoming year we will have a new President and a new session of Congress, which provides a clear opportunity to enact a national financial restoration plan by 2026, when we will celebrate the 250th Anniversary of our Declaration of Independence. To respectfully offer perspective about what is possible, in 2019 federal spending was $4.5 trillion, approximately equal to our current federal revenues.
We write to ignite a much-needed sense of urgency. Our call to action includes the following:
- Ensure total 2025 federal spending is less than in 2024.
- Implement a concrete plan to put the federal government on a path to a balanced budget as soon as feasible.
- 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.
These three actions represent a powerful, disciplined, and promising path forward. By combining fiscal responsibility with our centuries worth of energy resources that leverage advanced, clean technologies – we can produce a steady climb out of our massive pit of debt. In 2025, we urge you to make restoring America’s financial solvency a “Day One” priority for the sake of our states and the country. Our hard-won independence depends on it.
Elise M. Nishealla
Indiana Comptroller
and 36 other state financial officers