US national debt tops $40 trillion as interest costs soar

The United States' national debt has crossed a historic threshold, with Treasury Department figures showing total public borrowing reaching $40.047 trillion as of the latest accounting. The breakdown reveals $32.266 trillion in debt held by the public and $7.782 trillion in intragovernmental holdings. Chronic budget deficits, pandemic-era outlays, tax reductions, and rising military expenditures have accelerated the debt's climb, pushing it past the 40-trillion mark months earlier than many forecasters had anticipated.

Interest payments outstrip defence

In the first nine months of fiscal 2026—which began on October 1, 2025—the federal government recorded a deficit of $1.367 trillion. Net interest payments on the debt amounted to $827 billion during this period, eclipsing the $713 billion spent on national defence. Debt servicing now ranks as the second-largest budget item, trailing only social security outlays, which stood at $1.244 trillion. The figures underscore the mounting fiscal pressure facing Washington as borrowing costs continue to rise.

Rapid accumulation

The US public debt had previously surpassed $30 trillion in January 2022 and crossed the $39 trillion mark in March 2026, illustrating the accelerating pace of federal borrowing. The latest milestone comes amid ongoing debates over fiscal sustainability, with analysts warning that rising interest rates and persistent spending pressures could further strain the government's balance sheet. As the debt burden grows, the gap between revenue collection and expenditure commitments continues to widen, posing long-term challenges for policymakers.