The United States national debt has surpassed $40 trillion for the first time, according to the Treasury Department. The total public debt reached $40.047 trillion on Tuesday. This marks a key moment in U.S. fiscal history. The total includes $32.266 trillion in Treasury securities held by the public and $7.782 trillion in intra-governmental debt.
Key Details
The debt has more than doubled since January 2017, when it was $19.95 trillion. About one-third of this increase happened during the COVID-19 pandemic. This rise was driven by spending measures from both former President Donald Trump and President Joe Biden. The Committee for a Responsible Federal Budget noted that Trump approved $8.4 trillion in new debt. Biden added $4.3 trillion. In fiscal year 2026 alone, the debt increased by $1.8 trillion, mainly due to new government spending.
Experts warn that the rising debt poses risks to the economy. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said, "Forty trillion dollars of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another." She stressed that more borrowing could worsen inflation and limit budget priorities.
Background
This milestone comes as Congress debates spending bills. Lawmakers are currently at a standstill. The U.S. government could face a shutdown if no agreement is reached by September 30. As the debt keeps rising, worries about a fiscal crisis increase. Budget watchdogs are urging lawmakers to tackle the unsustainable path through tax increases or spending cuts.
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The rising national debt may lead to higher interest rates. This could affect government bonds and increase borrowing costs for consumers and businesses. Investors will closely watch upcoming Congressional talks on spending bills that could impact fiscal policy and economic stability.
Based on reporting by: irishtimes.com, us.cnn.com