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The United States national debt has surpassed $40tn for the first time in history, according to data from the US Treasury Department. The milestone comes after years of rising federal borrowing, with the debt now comprising about $32.3tn in publicly held Treasury securities and $7.8tn in intragovernmental holdings.
The debt has roughly doubled since 2017, driven by large government spending, pandemic-era relief programmes, tax policies, entitlement spending and rising interest costs. Interest payments have become one of the largest items in the federal budget, adding further pressure to the government’s finances.
Economists and fiscal watchdogs have warned that continued deficits could increase borrowing costs and reduce the government’s ability to respond to future economic crises. The Congressional Budget Office projects that publicly held US debt will continue rising substantially over the coming decade if current policies remain unchanged.
