US debt crosses $40 trillion threshold after doubling under Trump and Biden

On Wednesday, the U.S. Treasury Department reported that total federal debt reached $40.047 trillion, surpassing the $40 trillion mark for the first time in history. This staggering figure represents a doubling of the national debt under the administrations of President Donald Trump and President Joe Biden. The debt, which includes $32.266 trillion in Treasury securities held by the public and $7.782 trillion in intra-governmental debt, has more than doubled in less than a decade.

The rapid increase in debt can be attributed to the fiscal policies of both presidents, as well as the unprecedented spending on COVID-19 pandemic response measures. Experts warn that the soaring debt levels could lead to a fiscal crisis, exacerbating inflation, squeezing other budget priorities, and leaving the nation vulnerable to domestic and international emergencies.

The Committee for a Responsible Federal Budget, a nonpartisan fiscal watchdog group, has been sounding the alarm on the unsustainable trajectory of the debt for weeks. Treasury Secretary Scott Besseent attempted to mitigate the impact of the rising debt by doubling the size of buybacks for 10- to 30-year Treasury bonds, but the situation remains concerning.