US gross national debt passes 40 trillion dollars for the first time
The gross public debt of the United States reached 40.047 trillion dollars on Tuesday, according to data released by the Treasury Department. It is the first time the figure has crossed that threshold, and it has arrived earlier than expected: the Congressional Budget Office had projected 39.4 trillion by the end of fiscal 2026 and placed the jump to 40 trillion in 2027.
The United States' gross national debt surpassed 40 trillion dollars for the first time on Tuesday, according to a report from the Treasury Department. This milestone was reached earlier than anticipated, with the Congressional Budget Office forecasting the debt to reach 39.4 trillion by the end of fiscal 2026 and 40 trillion in 2027.
Of the total, 32.266 trillion is debt held by the public, including private investors, funds, and foreign holders, while 7.782 trillion is intragovernmental debt, which includes securities owed to the federal government's own trust funds, such as social security. The debt-to-GDP ratio now stands at 124%, the highest level since World War II.
Rising borrowing costs have played a role in the increase, with the yield on the 30-year Treasury bond hitting 5.3%, its highest since 2007. The government is facing higher costs to service its debt, which are projected to surpass social security spending within two years. The deficit for the fiscal year ending September 30 is expected to be 2.1 trillion dollars, or approximately 6% of GDP.
Factors contributing to the debt surge include concerns over inflation and the deficit, defense spending related to the Iran war, and tech companies borrowing for AI investments. The deficit for the year ending September 30 is projected to be 2.1 trillion dollars, close to 6% of GDP.
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