U.S. National Debt Surpasses $40 Trillion for the First Time
Key Takeaways
- •The U.S. national debt exceeded $40 trillion for the first time, doubling from its $19.95 trillion level in January 2017, according to Treasury Department data.
- •The debt has grown by $3.8 trillion since President Trump returned to office in January 2025, compared with an $8.4 trillion increase during Joe Biden's presidency.
- •Annual interest payments of roughly $1.1 trillion have overtaken Medicare to become the second-largest federal budget item, behind only Social Security.
- •The government recorded a $432 billion budget deficit in July 2026, its fourth-largest monthly shortfall on record, with the first 10 months of fiscal 2026 already exceeding the total fiscal 2025 deficit.
- •The Congressional Budget Office projects the One Big Beautiful Bill Act will add $4.7 trillion to the debt, while mandatory programs account for about 60% of annual federal spending.
The United States national debt has crossed $40 trillion for the first time, a milestone that underscores the mounting strain on the federal government's finances as spending continues to outpace revenue.
According to Treasury Department data, the debt has doubled since January 2017, when President Donald Trump first took office, rising from $19.95 trillion at that point. About one-third of the increase came during the two years following the COVID-19 pandemic, when the Trump and Biden administrations borrowed heavily to fund economic relief and recovery measures.
Since Trump returned to office in January 2025, the national debt has risen by $3.8 trillion. By comparison, it increased by $8.4 trillion during Joe Biden's presidency.
The fiscal picture has grown more strained in 2026, adding pressure at a time when federal borrowing is already at record levels. The government reported a $432 billion budget deficit in July 2026, its fourth-largest monthly shortfall on record, and the deficit for the first 10 months of the 2026 fiscal year has already exceeded the total gap recorded in fiscal 2025.
Interest payments are becoming an increasingly heavy burden. The United States is spending about $1.1 trillion annually on interest, with debt-service costs surpassing Pentagon spending in fiscal 2025. Interest payments have since overtaken Medicare spending to become the second-largest federal budget item, behind only Social Security, which highlights how rising financing costs are now taking a larger share of the budget before new spending decisions are even made.
According to figures cited by the Peter G. Peterson Foundation, the $40 trillion debt load is equivalent to about $117,000 per person in the United States and roughly $297,000 per household.
The Congressional Budget Office estimates that Trump's flagship second-term tax and spending package, known as the One Big Beautiful Bill Act, will add another $4.7 trillion to the national debt.
The rising debt has renewed debate over Washington's fiscal sustainability, with mandatory programs such as Social Security, Medicare, and Medicaid accounting for about 60% of annual federal spending. That mix of large entitlement commitments and growing interest costs leaves less room in the budget for other priorities, making the debt milestone more than a symbolic threshold for policymakers watching the federal balance sheet.
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