The United States national debt has surpassed $40 trillion for the first time in history, according to data released by the US Treasury Department.
Treasury figures show that debt held by the public stood at $32.266 trillion, while intragovernmental holdings totaled $7.782 trillion, bringing total outstanding federal debt to $40.047 trillion as of Tuesday.
The milestone came months earlier than expected and highlights the growing gap between US government spending and revenue. Federal debt has risen sharply in recent years following massive spending during the COVID-19 pandemic, tax cuts and increased military expenditures.
Rising interest costs have added further pressure to the federal budget. During the first nine months of fiscal year 2026, which began on October 1, 2025, the federal government recorded a $1.367 trillion deficit. Net interest payments reached $827 billion, exceeding defense spending of $713 billion and ranking second only to Social Security spending at $1.244 trillion.
The pace of borrowing has accelerated rapidly. US federal debt surpassed $30 trillion in January 2022, crossed $39 trillion in March 2026 and reached $39.7 trillion in July, before breaking the $40 trillion threshold.
Fiscal experts have warned that the growing debt burden could create wider economic challenges. Maya MacGuineas of the Committee for a Responsible Federal Budget said rising debt and interest costs could increase inflationary pressures, restrict government spending priorities and leave the country less prepared for future emergencies.
Margaret Spellings of the Bipartisan Policy Center described the current fiscal path as unsustainable, warning that rising federal debt is putting pressure on living costs, investment and long-term economic growth.
Carolyn Bourdeaux of the Concord Coalition called the $40 trillion milestone a “wake-up call,” arguing that Washington still lacks a credible plan to reverse the trend.
The White House defended the Trump administration’s approach, saying it is focused on cutting waste, fraud and abuse in federal spending while accelerating economic growth to improve the nation’s debt-to-GDP ratio.
The $40 trillion milestone is likely to intensify debate over US fiscal policy and the long-term economic burden of rising government debt.
