US national debt crosses $40 trillion for the first time

The total amount of US national debt has passed $40 trillion for the first time, according to Treasury Department data shared on Wednesday. The milestone marks a sharp rise in federal borrowing and comes as officials face renewed scrutiny over the gap between government spending and revenue. The figure is being watched closely because it reflects a long-running fiscal imbalance rather than a one-off event.

Sponsored

Treasury data show the debt stood at $19.95 trillion in January 2017, when Donald Trump was sworn in for his first term, and has doubled since then. The increase includes a $3.8 trillion rise since Trump returned to office in January 2025, bringing total debt growth across his two terms so far to $11.6 trillion. The article also says debt rose by $8.4 trillion during Joe Biden's term, driven by pandemic recovery spending and other major outlays.

The scale of the debt means it now amounts to about $117,000 per person in the United States and roughly $297,000 per household, according to the figures cited. The Treasury last week reported the fourth-highest monthly deficit in US history, at $432 billion for July, after tariff refunds ordered through the court system pushed customs receipts negative for a third straight month. Spending on Social Security and Medicare also continued to rise, adding to pressure on the federal budget.

The crossing of the $40 trillion threshold is significant because it highlights how quickly the federal debt burden has expanded over the past decade. The article says about one-third of the increase since 2017 came during the two years after the COVID-19 outbreak was declared a pandemic in March 2020. That period saw heavy borrowing under both Trump and Biden to support the pandemic response, and later spending continued to add to the total.

Sponsored

The development also has broader economic implications because higher debt can increase the cost of servicing government obligations and limit room for other spending. Margaret Spellings, chief executive of the Bipartisan Policy Center, said federal programmes spend much more than the government takes in and warned that debt is already raising the cost of living and reducing investment. The Peter G.

Peterson Foundation, a Washington-based think tank, said the $40 trillion figure is roughly equal to the combined value of the economies of China, Germany, Japan, the United Kingdom and India. What remains unclear is how quickly the debt will continue to rise and whether policymakers will take steps to slow the pace of borrowing. The article points to a deficit that is already running ahead of the same point in the previous fiscal year, suggesting the pressure is ongoing.

The next focus will be whether revenue improves, spending slows, or the deficit widens further in the months ahead.

#USnationaldebt #TreasuryDepartment #federaldeficit #DonaldTrump #JoeBiden

Sponsored