The U.S. national debt has surpassed 40 trillion U.S. dollars, according to data released by the Treasury Department on Wednesday.
The data show that debt held by the public and intragovernmental holdings read at 32.266 trillion dollars and 7.781 trillion dollars, respectively. Total public debt outstanding stood at 40.047 trillion dollars.
The milestone, coming months earlier than expected, reflects the fact that the U.S. federal government has been spending more than it collects in revenue, creating annual deficits that add to the national debt.
The federal government has invested trillions of dollars in response to the COVID-19 pandemic, and subsequently pursued tax cuts and increased military spending. As a result, U.S. federal debt has grown rapidly in recent years, triggering concerns in the bond market and rising Treasury yields. Increased interest payments have further driven up the total size of the U.S. debt.
A monthly report of the U.S. Treasury Department shows the U.S. federal government incurred a fiscal deficit of 1.367 trillion dollars in the first nine months of fiscal year 2026 (beginning October 1, 2025), with net interest payments amounting to 827 billion dollars in the period, exceeding defense spending of 713 billion dollars and second only to social security spending of 1.244 trillion dollars.
The U.S. federal government debt surpassed 30 trillion dollars in January 2022, exceeded 39 trillion dollars in March 2026, and hit 39.7 trillion dollars in July 2026.
US national debt tops 40 trillion USD
