The total U.S. government debt has surpassed $40 trillion for the first time, marking a new record as federal spending continues to outpace government revenue.
The Treasury Department’s latest debt balance showed $40.047 trillion on Tuesday afternoon, according to the figures released Wednesday. The milestone comes just five months after the national debt surpassed $39 trillion.
The U.S. national debt is approximately equal to the combined value of the economies of China, Germany, Japan, the United Kingdom, and India, according to the Peter G. Peterson Foundation (PGPF), a nonpartisan group that promotes U.S. fiscal responsibility. The U.S. debt amounts to roughly $297,000 per American household, or $117,000 per person.
A decade ago, the U.S. debt stood at about $19.4 trillion.
Debt Has More Than Doubled in a Decade
The latest milestone reflects years of rising federal borrowing under both Republican and Democratic administrations.
During former President Donald Trump’s first term, about $8.4 trillion was added to the national debt, according to the Committee for a Responsible Federal Budget. A significant portion was tied to federal spending during the COVID-19 pandemic.
During President Joe Biden’s administration, about $4.3 trillion was added to the debt, according to the group.
In fiscal year 2026, which began in October 2025, the government has added roughly $1.8 trillion to the debt so far.
The government also faces additional costs from tariff refunds. More than $100 billion in tariff refunds have been paid, according to the Bipartisan Policy Center.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said the $40 trillion figure should serve as a warning about the nation’s fiscal trajectory.
“For perspective, it took nearly 200 years for America’s gross debt to reach $1 trillion for the first time in 1981,” MacGuineas said, per The Guardian.
She warned that rising federal debt can contribute to inflation, limit other budget priorities, and leave the country more vulnerable to future emergencies.
Deficit Continues to Grow
The federal government reported a $432.3 billion budget deficit in July, the highest monthly deficit in more than five years. Government revenues have increased about 3% this fiscal year, but spending has grown faster. The annual shortfall is approaching $1.8 trillion.
The government is spending more than $1 trillion annually, or about $3 billion per day, on interest payments on the debt, according to PGPF.
Interest costs during the first 10 months of the fiscal year were 15% higher than during the same period a year earlier, reflecting both the larger debt burden and higher borrowing costs.
The national debt continues to grow at an approximate rate of $4.8 million per minute, $285 million per hour, or $6.8 billion per day.
Rising Yields Add to Pressure
The growing debt burden has also been reflected in the bond market.
The yield on 30-year U.S. Treasury bonds reached a 19-year high this week. Higher long-term Treasury yields can contribute to increased borrowing costs across the economy, including mortgage rates.
The average rate on a 30-year mortgage recently approached 6.7%, according to Freddie Mac.
Treasury announced Wednesday that it would increase its purchases of longer-term government debt, a move that does not reduce the amount of debt owed but comes as investors demand higher yields to hold U.S. government bonds.
Congress Faces Spending Deadline
The $40 trillion milestone comes as Congress remains divided over federal spending legislation. The House and Senate have passed different bills to fund the federal government. Without an agreement that passes both chambers and is signed by the president, the government is scheduled to shut down September 30.
Fiscal watchdog groups have called for Congress and the administration to address the nation’s growing debt and annual deficits.
“$40 trillion should be a wake-up call,” Carolyn Bourdeaux, executive director of Concord Action, said, per NPR. “But neither Congress nor the president have a credible plan to stop it from growing.”
“Despite the obvious recklessness of this fiscal path, we are showing no signs of slowing down,” Michael A. Peterson, CEO of PGPF, warned. “The debt growth is projected to accelerate as our society ages and healthcare costs continue to balloon. If we don’t reform our budget, we will hit $50 trillion in just 6 years.”
However, he concluded on a positive note, adding, “The only good thing about our fiscal challenge is that there are many available solutions, and the budget is entirely within our control. While China, Russia and Iran may enjoy seeing us devalue our own economic future, this is one problem that we can solve ourselves, without negotiating with any of them.”
The debt milestone underscores the growing challenge facing policymakers as the government continues to borrow at a pace that has pushed the national debt to an unprecedented level.
Provided by Dallas Express
