WASHINGTON (Reuters) — The United States’ national debt has surpassed $40 trillion for the first time, intensifying concerns over the country’s long-term fiscal outlook as rising interest costs and spending continue to outpace federal revenues.
According to the US Treasury Department’s latest daily debt figures, total public debt outstanding reached $40.047 trillion on Tuesday. The amount includes approximately $32.266 trillion in Treasury securities held by the public and $7.782 trillion in intra-governmental holdings.
The federal debt has more than doubled in less than a decade. It stood at about $19.95 trillion in January 2017, when Donald Trump began his first term as president.
A significant portion of the increase came during the COVID-19 pandemic, when the administrations of Trump and former President Joe Biden borrowed heavily to finance emergency relief measures. However, persistent budget deficits, tax and spending policies, growing social-program costs and rising interest payments have also contributed to the rapid accumulation of debt.
Fiscal watchdogs have warned that the current trajectory is unsustainable without major policy changes, including spending reductions, higher revenues or a combination of both.
Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, warned that mounting debt has consequences beyond government finances, potentially contributing to inflation, limiting resources available for other priorities and reducing Washington’s ability to respond to future domestic or international crises.
The $40 trillion milestone came less than five months after US debt crossed $39 trillion, highlighting the accelerating pace of federal borrowing. The national debt has also quadrupled in less than two decades, raising renewed debate in Washington over how lawmakers should address the country’s widening fiscal imbalance.
