The downgrade, from the highest rating to one notch below, comes as the president’s budget bill suffered a blow in Congress. Republican budget hawks joined Democrats earlier Friday to block the package — known as the One Big Beautiful Bill Act.

Moody’s Ratings slashed the United States’ credit rating down a notch to Aa1 from the highest triple A on Friday, citing the budgetary burden the government faces amid high interest rates.

Moody’s Ratings downgraded the United States’ debt on Friday, stripping the country of its last perfect credit rating. The move could rattle financial markets and push up interest rates, potentially creating an additional financial burden for Americans already struggling with tariffs and inflation.