US debt crosses $40 trillion mark for the first time; more than doubled in 10 years

The US government debt has crossed the $40 trillion mark for the first time, the Treasury Department said on Wednesday. This raises concerns as rising social safety-net costs and interest payments are outpacing government revenues.

The Treasury’s latest data showed total public debt at $40.047 trillion on Tuesday. Of this, $32.266 trillion was Treasury securities held by the public, while $7.782 trillion was intra-governmental debt.

The debt has more than doubled in less than ten years, increasing from $19.95 trillion in January 2017 when Donald Trump became president for the first time. About one-third of this rise occurred during two years of heavy borrowing to manage the Covid-19 pandemic under Trump and Joe Biden. Fiscal policies under both administrations, along with ongoing imbalances between taxes and spending, contributed to the rest.

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Budget experts have warned that the US could face a debt crisis unless lawmakers address the fiscal situation through higher taxes, spending cuts, or both. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said that the $40 trillion debt is not just a number on paper. She cautioned that increasing borrowing could worsen inflation, limit other budget priorities, and make the country more vulnerable to emergencies.

The $40 trillion milestone was reached less than five months after the debt hit $39 trillion and less than 20 years after it quadrupled from $1 trillion, a level first reached in 1981.

Foreign investors, who hold nearly one-third of US Treasuries, appear to be more cautious. Long-term Treasury yields recently hit their highest levels in nearly 20 years as investors demanded higher returns amid heavy government bond issuance. Higher yields can increase borrowing costs for mortgages, cars, and commercial loans.

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Treasury Secretary Scott Bessent announced on Wednesday that the government would double the size of some debt buyback operations for 10- to 30-year Treasuries to at least $4 billion per operation.

The US recorded a $432 billion budget deficit in July, the fourth-highest monthly deficit on record. The deficit for the first ten months of fiscal 2026 has already surpassed the full-year deficit of fiscal 2025.

US public debt rose by $7.8 trillion during Trump’s first term and by another $3.8 trillion since he returned to office in January 2025. Biden’s term saw an increase of $8.4 trillion.