U.S. National Debt Surpasses $40 Trillion for the First Time

Key facts

• The U.S. national debt crossed $40 trillion for the first time, reaching $40.047 trillion.
• The debt has more than doubled from roughly $20 trillion less than a decade ago.
• The Congressional Budget Office had predicted the threshold would be reached in fiscal year 2028, making the actual crossing about two years early.
• Debt climbed from $39 trillion to $40 trillion in approximately five months.
• Contributing factors include war spending in Iran, the One Big Beautiful Bill Act, aging demographics, and tariff refunds after a Supreme Court ruling against Trump's tariffs.
• The CBO estimates the 2025 tax legislation will add $4.7 trillion to the debt.
• Interest payments are now the second-largest federal expenditure after Social Security, projected to exceed $1 trillion this fiscal year and outpace defense spending.
• Thirty-year Treasury yields hit a nearly 20-year high, and Treasury Secretary Scott Bessent announced doubled buybacks of 10- to 30-year securities.
• Marc Goldwein and Maya MacGuineas of the Committee for a Responsible Federal Budget commented on the debt's vicious cycle and economic impact.
• Cumulative borrowing in the first ten months of fiscal 2026 already exceeds the total for all of fiscal 2025.