🚨US national debt surpasses $40 trillion
The total U.S. national debt surpassed $40 trillion this week after adding $1 trillion in new debt in just a few months.
U.S. Treasury data shows that, as of Aug. 18, “Total Public Debt Outstanding” stood at $40.047426 trillion. The milestone comes as new projections show the annual U.S. deficit is expected to reach $2.1 trillion when the government’s fiscal year ends Sept. 30.
It follows another grim fiscal milestone, with debt held by the public surpassing the size of the U.S. economy this spring. The U.S. is on pace to break the all-time record debt-to-GDP ratio set in 1946 after World War II.
Treasury data released Wednesday also put debt held by the public, which excludes intragovernmental holdings, at $32.265799 trillion.
The Congressional Budget Office projects that without major policy changes, federal debt held by the public will rise to 120% of GDP in 2036 and 175% by 2056.
A recent CBO report found government receipts grew 3% last year, failing to keep pace with spending, which rose 5%. Key drivers include increased spending on Social Security and Medicare as the population ages, along with rising interest payments.
Interest on the national debt has surged, exceeding defense spending in 2024 and now accounting for 15% of all federal spending. More than 1 in 7 dollars spent by the government goes toward servicing the debt.
