US national debt surges past $40 trillion for first time

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A file photo of a person holding US dollar bills. — AFP/File
A file photo of a person holding US dollar bills. — AFP/File

WASHINGTON: The US gross national debt has surged past $40 trillion for the first time, government data showed on Wednesday, outstripping earlier forecasts at a pace fuelled in part by President Donald Trump’s invalidated tariffs.

The uptick in borrowing is a blow to Trump, who promised to cut public spending during his 2024 presidential campaign, and sparked a backlash from US representatives across the political field.

The new record comes as longer-term US obligations linked to social security and health care have been growing, while interest payments have climbed as well.

Total public debt outstanding stood at $40.05tr at the close of business on Tuesday, according to data released on Wednesday by the Treasury Department.

That surpasses an earlier forecast by the Congressional Budget Office that overall borrowing would hit $39.4tr by the end of fiscal year 2026.

Rising US debt comes as concerns over inflation and government spending have been driving investor worries, and the cost of borrowing has grown.

The war in the Middle East has also piled pressure on Trump, costing the lives of 18 American service members and $37.5 billion in military spending as the nearly six-month-old conflict grinds on with little sign of resolution.

Defence spending shows no sign of slowing, with the US House of Representatives narrowly passing an annual defence policy bill in July that would authorise a record $1.15tr in funding for the Pentagon.

Republican Senator Rick Scott joined a wave of lawmakers in condemning the debt surge, urging Congress to “get spending under control and BALANCE THE BUDGET”. “Americans deserve better,” he wrote on X.

Democratic Senator Mark Kelly, a retired US Navy combat pilot, accused Trump of enriching himself while running up the national debt.

“The President said he’d pay off the debt in his first term. “Well, we all knew that was a lie,” he posted.

“Instead, he ran it up to $40 trillion while he and his family made billions.”

Yields on long-term Treasury bonds rose Tuesday to the highest level since 2007, reflecting growing price pressures due to war on Iran and anxiety over US deficit spending. The increase forces the US government to refinance debt at the highest rates since before the 2008 global financial crisis.

Published in Dawn, August 21st, 2026

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