US National Debt Hits Record $40 Trillion

The U.S. national debt surpassed $40 trillion for the first time on Wednesday, reaching a historic high of $40.047 trillion, according to Treasury Department data shared with multiple outlets.

This milestone reflects years of increased government spending under both Donald Trump and Joe Biden administrations. During his first term, Trump approved $8.4tn worth of debt, with significant portions allocated to Covid-19 relief spending. Since taking office a second time in January 2025, the national debt has grown by an additional $3.8 trillion, contributing to a total growth of $11.6 trillion across his two terms so far according to Treasury Department data shared on Wednesday.

The Biden administration saw an increase of $4.3tn in debt, driven by infrastructure investments and clean energy subsidies. In fiscal year 2026, which started in October 2025, the debt has already increased by $1.8 trillion, with a substantial portion dedicated to tariff refunds totaling $100bn.

Government spending watchdog groups have anticipated this threshold for weeks after debt reached $39tn in March. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warned that '$40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another.' She cautioned about potential exacerbation of inflation and reduced fiscal flexibility in emergencies.

The unprecedented $40 trillion figure highlights competing administration priorities, from boosting defense spending that the U.S. relies on to carry out President Donald Trump's almost-6-month-old war in Iran to lowering the cost of gas and groceries. Experts say the exploding debt is already affecting Americans' pocketbooks by raising borrowing costs for things like mortgages and cars, lowering wages from businesses that have less money available to invest, and creating more expensive goods and services.

The threshold was breached as Congress remains at an impasse over its latest spending bill. The U.S. House and Senate passed different bills, with a government shutdown looming on September 30 if no agreement is reached. Additionally, the Treasury announced it would double its buyback of government debt to address bond market concerns about ongoing inflation and geopolitical tensions.

The Bipartisan Policy Center estimates that the U.S. will most likely reach the $41.1 trillion debt limit sometime between late winter and mid-summer of 2027, requiring Congress to again vote on whether to raise or suspend it.