US national debt tops $40 trillion for first time

The US Treasury has reported that the total national debt of the United States has surpassed the $40 trillion mark for the first time in history. This alarming milestone was announced by the Treasury Department, raising concerns about a potential financial crisis as rising social safety net program costs and mounting interest payments outpace diminishing revenues, which have been impacted by recent tax cuts.

According to the latest data from the Treasury, the outstanding public debt reached $40.047 trillion on Tuesday. This substantial figure encompasses $32.266 trillion in Treasury securities held by the public and $7.782 trillion in intragovernmental holdings. The national debt has more than doubled in just under a decade, increasing from $19.95 trillion when Donald Trump was inaugurated as president in January 2017.

A significant portion of this debt growth, nearly a third, occurred during the two years of heavy borrowing to fund COVID-19 relief measures under both presidents Trump and Joe Biden. The remainder of the increase is attributed to the fiscal policy decisions made by both presidents, alongside longstanding imbalances in taxation and spending.

Since Trump's second term began in January 2025, the US debt burden has risen by an additional $3.8 trillion, bringing the total increase over both of his terms to $11.6 trillion. Public debt grew by $8.4 trillion during Biden's term, which was marked by substantial spending on pandemic recovery and investments in infrastructure, clean energy, and other Democratic priorities.

Experts from the nonpartisan Committee for a Responsible Federal Budget estimate that policy choices made by both Trump and Biden have propelled the federal debt trajectory beyond what would have accumulated under the spending laws in place when each took office.