Chicago – August 19, 2026
The United States’ total national debt has surpassed $40 trillion for the first time, highlighting the growing pressure of persistent budget deficits, rising interest costs and increased government spending.
The Treasury Department reported that total public debt outstanding reached approximately $40.047 trillion on Tuesday. The figure includes $32.266 trillion held by public investors and $7.782 trillion in intragovernmental debt.
The milestone comes less than five months after federal debt crossed $39 trillion, underscoring the accelerating pace of borrowing. Reuters reported that debt increased by about $11.6 trillion during President Donald Trump’s two terms and by $8.4 trillion during President Joe Biden’s four-year presidency. Pandemic relief, infrastructure spending, clean-energy subsidies, tax cuts and other policy measures contributed to the rise.
The Treasury also recorded a $432.3 billion deficit in July, the largest monthly shortfall in more than five years, CNBC reported.
Economists warn that elevated interest payments and spending on Social Security, Medicare and defense could further widen future deficits. Investors are already demanding higher returns on Treasury securities, increasing the government’s refinancing costs.
