The U.S. national debt has surpassed $40 trillion for the first time, marking a staggering new milestone in the country’s borrowing. Treasury data released on Wednesday showed total outstanding federal debt reaching roughly $40.05 trillion, with about $32.27 trillion held by the public and $7.78 trillion in intragovernmental holdings. The debt has more than doubled since 2017, underscoring the scale of the government's long-term fiscal challenges.
The national debt when President Donald Trump entered the Oval Office for his second term was roughly $36.22 trillion, marking an escalation of about $3.83 trillion thus far under his current tenure. Interest payments have also become an increasingly significant burden, while Social Security, Medicare and defense spending account for major portions of federal outlays. The Congressional Budget Office (CBO) projects that debt held by the public will rise from about 101 percent of gross domestic product (GDP) in 2026 to 120 percent by 2036.
The debt milestone also comes at a difficult political moment for Trump, whose economic approval ratings have declined amid concerns over inflation, gas prices, cost of living and the war with Iran. Newsweek reached out to the White House via email on Wednesday night for comment. The national debt represents the total amount of money the federal government has borrowed over time to cover spending that exceeds its revenues.
While the $40 trillion milestone reflects decades of borrowing under presidents and Congresses of both parties, the president can have an influence on the trajectory of the debt through policies involving taxes, government spending and economic growth. For example, tax cuts that reduce federal revenue or new spending programs can increase budget deficits, while policies that boost economic growth and government revenues can help improve the government's fiscal position. The CBO currently projects a $1.9 trillion federal deficit for fiscal year 2026.
Still, the national debt is not something a president can control alone. Congress ultimately plays a central role in determining federal taxes and spending, and much of the debt reflects policies and commitments built up over many administrations. The $40 trillion milestone itself reflects borrowing under both Republican and Democratic presidents, including spending during the COVID-19 pandemic and long-running costs associated with programs such as Social Security, Medicare and interest on the debt.
Mark Williams, master finance lecturer at Boston University's Questrom School of Business, told Newsweek via email on Wednesday night, "In surpassing $40 trillion in cumulative debt, the White House is ignoring basic economic fact: greater debt eventually leads to higher interest costs and increased inflation. US debt is also growing more rapidly than the country’s Gross Domestic Product, demonstrating that mountainous debt levels are producing diminished economic benefit." Williams continued: "Current White House tax policies have pressured the government to make up for revenue shortfalls by raising U.S. borrowing levels. As the government continues to issue more debt, it will spike the cost of borrowing and reduce consumer spending.
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