US national debt crosses $40 trillion for first time
US national debt has surpassed $40 trillion, reflecting persistent federal deficits and rising interest payments that now exceed defense spending.
The United States national debt has crossed the $40 trillion mark for the first time, according to fresh data from the Treasury Department. The total public debt outstanding stood at $40.047 trillion, comprising $32.266 trillion in debt held by the public and $7.781 trillion in intragovernmental holdings.
The milestone arrives earlier than many analysts had projected, underscoring the federal government's continued pattern of spending beyond its revenue. Annual budget deficits have steadily added to the debt pile, a trend accelerated by pandemic-era relief programs, subsequent tax cuts, and increased military outlays.
A Treasury monthly statement covering the first nine months of fiscal year 2026 — which began in October 2025 — shows a fiscal deficit of $1.367 trillion. Notably, net interest payments during that period reached $827 billion, surpassing defense spending of $713 billion and trailing only social security outlays of $1.244 trillion.
The rapid accumulation of debt has also stirred concerns in bond markets, contributing to rising Treasury yields. Higher yields, in turn, have inflated the cost of servicing the debt, creating a feedback loop that further expands the total.
For context, the national debt crossed $30 trillion in January 2022, exceeded $39 trillion in March 2026, and stood at $39.7 trillion as of July 2026 — before breaching the latest threshold just weeks later.