US Debt National Debt Surpasses $40 Trillion for First Time

The US national debt has crossed $40 trillion for the first time, according to new Treasury Department data, adding pressure on President Donald Trump over government spending and borrowing.

Total public debt reached about $40.05 trillion at the close of business on Tuesday.

The figure exceeds an earlier Congressional Budget Office forecast of $39.4 trillion by the end of fiscal year 2026.

Debt growth outpaces forecasts

The latest increase comes as the US government faces rising costs for social security and healthcare.

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Interest payments have also increased as borrowing costs remain high.

The rapid rise in debt has raised concerns among investors about inflation and government spending.

Trump campaigned in 2024 on reducing public spending.

The latest debt figures have therefore drawn criticism from lawmakers across the political spectrum.

Lawmakers criticise rising debt

Republican Senator Rick Scott called on Congress to reduce government spending and balance the federal budget.

“Americans deserve better,” Scott wrote on X.

Democratic Senator Mark Kelly also criticised Trump over the growing debt.

Kelly accused the president of increasing the national debt while benefiting financially.

The criticism highlights growing political divisions over how Washington should manage federal spending and borrowing.

Defence spending adds pressure

US defence spending has also added to pressure on federal finances.

The ongoing Middle East conflict has increased US military costs.

The conflict has killed 18 American service members and generated about $37.5 billion in military spending, according to the report.

Defence spending could rise further.

The US House of Representatives narrowly passed an annual defence policy bill in July.

The legislation would authorise a record $1.15 trillion for the Pentagon.

Treasury yields reach 2007 levels

Long-term US Treasury yields also rose on Tuesday.

Yields reached their highest level since 2007.

Investors remain concerned about inflation, government borrowing and the financial impact of the conflict involving Iran.

Higher yields increase the cost of refinancing government debt.

The latest rise means the US government now faces some of its highest borrowing costs since before the 2008 global financial crisis.

The record debt level is likely to intensify debate in Washington over spending, taxation and the long-term sustainability of US government finances.