Rand Paul says U.S. cannot grow out of $40 trillion debt without spending cuts

Sen. Rand Paul, R‑Ky., told Newsmax on Sept. 16, 2026 that the United States cannot grow its way out of the $40 trillion national debt without deep spending cuts.

His warning comes as the debt reaches historic levels and President Donald Trump has floated a $5,000 dividend for every adult, a proposal Paul said would be impossible while the government is running a $2 trillion deficit.

Paul also rebuked Treasury Secretary Scott Bessent for a more optimistic outlook on the debt trajectory, arguing that optimism ignores the reality that the debt is "out of control" and threatens the value of Americans’ earnings.

He said both parties have failed to tell the public that some government programs will need to be reduced in order to cut costs. Paul outlined a five‑year plan that begins with a 1 percent cut – a “one‑penny” plan – and ramps up to roughly a 6 percent reduction each year. The plan relies on spending cuts rather than tax increases, and Paul believes the cuts could balance the budget within five years.

The proposal would spare Social Security but target Medicare, which Paul said contains “waste and fraud” that could be eliminated with a 6 percent cut and stricter means testing, without reducing health benefits.

Paul’s comments also hinted at a possible presidential run, noting he is "50‑50" about entering the race and emphasizing the need for a free‑market candidate who supports international trade and opposes large‑government solutions.

The interview underscores growing fiscal concerns as midterm elections approach, and it signals that debates over spending cuts and debt reduction are likely to intensify in Congress in the weeks ahead.