Free daily briefing on global business news.
The milestone arrived months ahead of prior forecasts, driven by war spending, tax cuts, and rising interest costs that now exceed Medicare outlays
The U.S. national debt crossed $40 trillion for the first time this week, according to the Treasury Department, as government spending continues to outpace revenue by more than $2 trillion annually.
Treasury data showed the debt reaching $40.047 trillion, a figure that has more than doubled from roughly $20 trillion less than a decade ago, according to Reuters. A Congressional Budget Office forecast from May 2023 had not anticipated the threshold being reached until fiscal year 2028 — making the actual crossing roughly two years premature — and the debt climbed from $39 trillion to $40 trillion in roughly five months, according to CNN.
Among the factors accelerating the debt load: expanded spending on the war in Iran, the One Big Beautiful Bill Act signed in 2025, aging demographics driving up Social Security and Medicare costs, and tariff refunds ordered after the Supreme Court struck down many of President Donald Trump's import taxes, according to NPR. The Congressional Budget Office estimates the 2025 tax legislation alone will add $4.7 trillion to the debt, according to Reuters.
