US debt crosses historic threshold! National debt surpasses $40 trillion

The United States has reached a new record in public finances. According to figures released by the Treasury Department, the country’s national debt rose to $40.047 trillion, crossing the $40 trillion threshold for the first time in history. Persistent budget deficits, pandemic-era spending, tax cuts and rising military expenditures were cited among the main factors behind the rapid increase in debt.

Publicly held debt exceeds $32 trillion

Of the total debt, $32.266 trillion was classified as debt held by the public.

Intragovernmental holdings stood at $7.782 trillion. Together, the two categories pushed total federal debt to $40.047 trillion.

$1.3 trillion budget deficit in nine months

During the first nine months of the 2026 fiscal year, which began on October 1, 2025, the federal government recorded a budget deficit of $1.367 trillion.

The rapid rise in borrowing pushed the national debt past the $40 trillion mark months earlier than previously expected.

Interest payments overtake defense spending

The growing debt burden has also had a direct impact on federal interest expenses.

Net interest payments reached $827 billion during the first nine months of the fiscal year, exceeding defense spending of $713 billion over the same period.

Interest costs became the second-largest federal budget item after Social Security spending, which stood at $1.244 trillion.

Debt rises from $30 trillion to $40 trillion in four years

US public debt first surpassed $30 trillion in January 2022. It crossed the $39 trillion mark in March 2026 and, only a few months later, moved beyond $40 trillion.

Source: NationalTurk