The US national debt now stands at $40 trillion
WASHINGTON (AP) — The national debt surpassed a record $40 trillion on Wednesday, a staggering milestone as defense costs, social programs like Social Security and Medicare and interest on the burgeoning deficit to make up an enormous share of federal spending. The milestone figure was recorded just five months after the U.S. hit a record $39 trillion debt in March. It…
On August 19, 2026, the U.S. national debt surpassed a staggering $40 trillion, marking a new record high. This milestone was reached just five months after the debt hit $39 trillion in March and five months before that, in October, of the same year. The debt figures highlight competing priorities of the Trump administration, which has been focusing on increasing defense spending, as well as efforts to lower the cost of living with issues like gas and grocery prices.
White House spokesman Kush Desai stated that the administration has been concentrating on reducing waste, fraud, and abuse in federal spending while boosting economic growth to improve the debt-to-GDP ratio. However, experts warn that the surge in debt and this new record milestone is already impacting Americans' finances. Higher borrowing costs for mortgages and car loans, lower wages due to reduced investments by businesses, and more expensive goods and services are some of the consequences of the exploding debt.
Margaret Spellings, president and CEO of the Bipartisan Policy Center, emphasized that the federal debt is already raising the cost of living and stifling other spending and investment, which could threaten the economy and long-term prosperity of Americans.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
