The U.S. national debt has surpassed $40 trillion for the first time, more than doubling in less than a decade as federal spending, tax cuts, pandemic relief and rising interest costs continue to strain the nation’s finances.
The Treasury Department reported total public debt outstanding reached $40.047 trillion Tuesday. That includes about $32.3 trillion in Treasury securities held by the public and $7.8 trillion in intragovernmental debt.
The milestone comes less than five months after the debt reached $39 trillion and represents a dramatic increase from the $19.95 trillion recorded when President Donald Trump began his first term in January 2017.
About one-third of the increase since then occurred during massive government borrowing to address the COVID-19 pandemic under Trump and former President Joe Biden. Other increases resulted from tax and spending policies under both administrations and longstanding federal budget imbalances.
Debt increased by $7.8 trillion during Trump’s first term, with more than half of that coming during the pandemic. Since Trump returned to office in January 2025, another $3.8 trillion has been added, bringing the increase during his two terms to $11.6 trillion so far.
Debt grew by $8.4 trillion during Biden’s four years in office, including pandemic recovery spending and investments in infrastructure and clean energy.
The latest milestone comes as the government faces rapidly growing interest expenses. The government now spends about $1.1 trillion annually servicing federal debt. During the first 10 months of fiscal 2026, interest costs surpassed Medicare spending to become the federal government’s second-largest expense, behind Social Security.
The Treasury also reported a $432 billion federal deficit in July, the fourth-highest monthly deficit on record. The deficit through the first 10 months of fiscal 2026 has already exceeded the total for the entire previous fiscal year.
Budget watchdogs warn continued borrowing could push interest rates higher, increase inflationary pressures and leave Washington with less flexibility to respond to future emergencies.
Long-term Treasury yields have already climbed to their highest levels in nearly two decades, potentially affecting borrowing costs throughout the economy, including rates for mortgages, auto loans and business financing.
Source: Reuters