Trump Investigates U.S. Debt for Fraud, Suggests Treasury Payments 'Might Not Count'

President Donald Trump on Sunday said that his administration is investigating the U.S. national debt, suggesting that certain Treasury payments may be fraudulent and "might not count." Speaking aboard Air Force One, Trump said his administration is reviewing debt records to uncover potential financial mismanagement. 

The U.S. national debt is approximately $36.2 trillion, exceeding 120% of the country's GDP, according to the U.S. Treasury. Trump indicated that Treasury payments are currently under review. 

“We’re even looking at Treasuries,” he said. “There could be a problem—you’ve been reading about that. That could be an interesting problem…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.”

Don't Miss:

• The average American couple has saved this much money for retirement — How do you compare?
• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

National Economic Council Director Kevin Hassett told CNBC on Monday that Trump's comments weren't about payments to holders of US debt but possible improper payments to contractors and for grants.

This has sparked questions from financial experts since Treasury securities are considered some of the safest investment instruments worldwide. 

While Trump has suggested that fraudulent payments could be inflating the national debt, independent budget watchdogs argue that the administration's proposed tax cuts would add trillions of dollars in new debt. The Committee for a Responsible Federal Budget estimated that Trump’s tax plans will add $7.75 trillion to the projected debt through fiscal year 2035.

Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.

To help crack down on eliminating waste and identify fraudulent spending in the federal government, Trump has enlisted billionaire Elon Musk to lead an overhaul of federal government operations. Musk's newly established Department of Government Efficiency has reportedly been reviewing payroll and spending records, raising privacy and security concerns.

A federal judge recently blocked Musk’s team from accessing and storing data from certain government financial systems, citing the risk of improper disclosure of sensitive information. Treasury Secretary Scott Bessent said that Musk's team had only “read-only” access and could not make changes to the system.

Beyond speculative fraudulent payments from the Treasury, Trump also said that foreign countries play a role in the United States' rising debt, blaming countries like Mexico and Canada for taking advantage of the U.S. in trade deals. 

“We’re not that rich right now. We owe $36 trillion dollars. That’s because we let all these nations take advantage of us,” Trump told Fox News in an interview aired on Sunday.

See Also: The average 401(k) balance soars to a record-breaking high – Here's how to know if your nest egg is keeping pace.

While Trump tied trade deficits to the national debt, financial experts say the two are separate issues. Trade deficits measure the difference between a country’s imports and exports, whereas the national debt reflects government borrowing over time. Treasury data shows that as of November, Canada and Mexico held $374 billion and $100 billion in U.S. Treasury securities, respectively.

Trump's investigation into Treasury payments has sparked debate among economists and lawmakers. While supporters argue that identifying wasteful government spending is crucial, critics warn that questioning the validity of Treasury payments could destabilize global financial markets. With the debt ceiling deadline looming, all eyes are on Congress to determine the future of U.S. fiscal policy.

As this situation develops, financial experts emphasize the importance of distinguishing between legitimate debt obligations and potential inefficiencies in government spending. Whether Trump's efforts will yield meaningful reductions in the national debt remains to be seen.

Read Next:

• Many are using retirement income calculators to check if they’re on pace — here’s a breakdown on what’s behind this formula.
• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!