The United States national debt exceeded $40 trillion for the first time, reaching approximately $40.05 trillion by August 18, 2026, according to multiple government and financial sources [1, 2, 3, 4, 5, 6]. This milestone reflects a debt total that includes about $32.27 trillion in Treasury securities held by the public and $7.78 trillion in intra-governmental debt holdings [1, 3, 4, 5, 6].
The national debt has more than doubled in less than a decade, rising from $19.95 trillion in January 2017 when President Donald Trump took office to over $40 trillion today [1, 3, 4, 5]. About one-third of this growth occurred during two years of pandemic-related borrowing under both the Trump and Biden administrations [1, 3, 4, 5]. Long-standing deficits driven by tax cuts, expanded social safety net programs, and increased military spending have also contributed extensively beyond pandemic relief efforts [1, 2, 4, 7, 8, 9, 6].
In the current fiscal year 2026, which began in October 2025, roughly $1.8 trillion has been added to the national debt so far [8]. Interest payments on the debt have risen sharply to about $1.17 trillion for the fiscal year, a nearly 15% increase compared to last year [2, 5]. The 30-year US Treasury bond yield recently reached 5.34%, marking a two-decade high and increasing borrowing costs further [2, 5, 10]. The Treasury Department responded by expanding its buyback program for long-term debt to try to control these yields [2, 5].
Political gridlock has limited options for addressing the debt. Republicans generally oppose tax increases, while both parties resist cutting popular social programs, leaving few avenues to reduce deficits [2, 4, 8, 6]. Budget watchdog groups warn that unless Congress raises taxes, cuts spending, or both, the US faces a looming debt crisis [1, 3, 4, 6]. Fitch Ratings projects the statutory debt ceiling of $41.1 trillion could be reached by mid-2027 [5].
Democratic Senator Mark Kelly criticized the Biden administration for not reducing the debt, saying, "The President said he’d pay off the debt in his first term. Well we all knew that was a lie," while Democratic Congresswoman Jasmine Crockett blamed Republicans, noting, "You can’t max out the card AND pretend you’re the accountant" [8]. Treasury Secretary Scott Bessent expressed concern about the deficit pace, saying, "A key reason I got involved in politics was to help tackle deficits running at a pace unprecedented for times outside of major wars, pandemics or depressed job markets" [2].
Internationally, Iran’s foreign minister Abbas Araghchi criticized US economic policy amid the debt news, calling the US national debt a sign of internal crisis and warning it threatens the global economy [8].
The Federal Reserve has signaled readiness to raise interest rates further if inflation does not fall to target levels, which could add upward pressure on borrowing costs [5]. Gold prices have also risen partly due to Treasury actions and geopolitical tensions [10].
Next steps include monitoring the approaching debt ceiling, with Fitch predicting the limit may be reached by mid-2027, raising the prospect of renewed political battles over borrowing authority and fiscal policy [5].
