WASHINGTON -- The US national debt has surpassed $40 trillion for the first time in history, according to data released by the Treasury Department on Wednesday.
The data shows that debt held by the public and intragovernmental holdings stood at $32.266 trillion and $7.782 trillion, respectively, bringing total public debt outstanding to $40.047 trillion as of Tuesday.
The milestone, reached months earlier than expected, reflects the US federal government's persistent budget deficits, as spending continues to exceed revenue, adding to the national debt.
The federal government has spent trillions of dollars in response to the COVID-19 pandemic and subsequently pursued tax cuts and increased military spending. As a result, US federal debt has grown rapidly in recent years, raising concerns in the bond market and pushing Treasury yields higher. Rising interest payments have further driven up the total size of the national debt.
A monthly report from the Treasury Department shows that the federal government recorded a fiscal deficit of $1.367 trillion in the first nine months of fiscal year 2026, which began on Oct 1, 2025. During that period, net interest payments totaled $827 billion, exceeding defense spending of $713 billion and ranking second only to social security spending, which amounted to $1.244 trillion.
