JD Vance says Scott Bessent has ‘discreet plan’ to tackle $40T national debt

WASHINGTON, DC: Vice President JD Vance on Thursday, August 20, claimed that Treasury Secretary Scott Bessent has a “very discreet plan,” backed by President Donald Trump, to address the massive $40 trillion national debt by making the US economy grow faster than the debt.

Vance made the remarks as the national debt continued to draw scrutiny from lawmakers and fiscal policy groups, as it more than doubled in the last decade. Bessent also separately said that the country can “grow our way out” of the debt.

JD Vance says Scott Bessent has Trump-backed debt strategy

Speaking on Newsmax, Vance said that Bessent is working to change the pace at which the debt is growing relative to the broader economy. 

“Scott Bessent, the amazing Treasury secretary, he has had a very discreet plan, of course, supported by the president of the United States, to get the United States to a point where our economy is growing faster than our debt,” Vance said. “And if you look, we are on track.”

Vance said the administration inherited a situation in which the national debt was increasing faster than gross domestic product. He argued that reversing that trend is the central part of the administration’s approach.

“Even though the debt is too high, even though we inherited this debt bomb from the Biden administration, we actually do have a plan to get the economy growing faster than the debt,” Vance said. “And that's the most important thing,” he added.

Vance did not provide specific details of Bessent’s plan. He also said high debt charges were placing pressure on taxpayers, while arguing that the situation had improved under the Trump administration.

The Treasury Department on Wednesday, August 19, reported that the national debt surpassed $40 trillion this week. About $32.27 trillion is held by the public, while the remainder consists of intra-governmental holdings.

Scott Bessent says US can ‘grow our way out’ of debt

Bessent addressed the debt on Thursday, August 20, as well, during an interview with CNBC’s 'Squawk on the Street,' saying the $40 trillion figure itself should not be viewed as the central measure of the country’s fiscal position.

“Well, I mean, there's nothing magic about the $40 trillion number, and we can grow our way out of that,” Bessent said. He also said there had been “a lot of misinformation” about the federal deficit and the deficit-to-GDP ratio.

Bessent pointed to tariff refunds resulting from a Supreme Court ruling as one temporary factor affecting the government’s finances. He said US Trade Representative Jamieson Greer was expected to maintain the same overall level of tariffs and that 2026 tariff revenue would be roughly comparable to 2025.

The national debt has increased by about $2.88 trillion over the past year, according to a recent Joint Economic Committee report. The committee also reported that the average interest rate on marketable federal debt reached 3.44% in July, up from 1.48% five years earlier.