US national debt tops 40 trillion dollars for first time

The US national debt has surpassed 40 trillion US dollars, according to data released by the Treasury Department on Wednesday.

The data show that debt held by the public and intragovernmental holdings read at $32.266 trillion dollars and $7.781 trillion, respectively. Total public debt outstanding stood at $40.047 trillion.

The milestone, coming months earlier than expected, reflects the fact that the US federal government has been spending more than it collects in revenue, creating annual deficits that add to the national debt.

The federal government has invested trillions of dollars in response to the COVID-19 pandemic, and subsequently pursued tax cuts and increased military spending. As a result, US federal debt has grown rapidly in recent years, triggering concerns in the bond market and rising Treasury yields. Increased interest payments have further driven up the total size of the US debt.

A monthly report of the US Treasury Department shows the US federal government incurred a fiscal deficit of $1.367 trillion dollars in the first nine months of fiscal year 2026 (beginning October 1, 2025), with net interest payments amounting to $827 billion in the period, exceeding defense spending of $713 billion and second only to social security spending of $1.244 trillion.

The US federal government debt surpassed $30 trillion in January 2022, exceeded $39 trillion in March 2026, and hit $39.7 trillion in July 2026.