US gross national debt tops $40tn for first time

On Wednesday, the United States' gross national debt surpassed the $40 trillion mark for the first time in history, according to the US Treasury Department. The debt reached $40.047 trillion on Tuesday afternoon, marking the highest debt in US history. The milestone reflects years of government spending under both Donald Trump and Joe Biden.

During Trump's first term, $8.4 trillion worth of debt was approved, largely due to Covid-19 relief spending. Biden approved $4.3 trillion worth of debt during his presidency. In fiscal year 2026, which began in October 2026, $1.8 trillion has already been added to the debt, with a significant portion allocated to tariff refunds totaling $100 billion.

Government spending watchdog groups had predicted weeks ago that the US would surpass the $40 trillion threshold, with debt reaching $39 trillion in March. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, noted that $40 trillion of debt doesn't exist solely on government ledgers; it impacts the economy and can lead to inflation, strain other budget priorities, and leave the country vulnerable to domestic and international crises.

As Congress remains in a stalemate over a new spending bill, which is scheduled to cause a government shutdown on September 30 if no agreement is reached, the Treasury announced it would double its debt buyback efforts. This move aims to counteract inflation concerns and difficulties in attracting investors for the US debt amid ongoing inflation and tensions with Iran.