US dollar bills [Reuters]
US dollar bills [Reuters]

The United States national debt has surpassed $40 trillion for the first time in history.

According to the US Treasury Department, total national debt stood at $40.05 trillion as of Wednesday.

Of that total, debt held by the public and private investors amounted to $32.27 trillion, while intragovernmental debt — obligations between federal agencies — totaled $7.78 trillion.

The debt crossed the $30 trillion mark in January 2022, meaning it has grown by $10 trillion in just over four years.

Reuters noted that when Donald Trump began his first term in January 2017, the national debt stood at $19.95 trillion — meaning it has more than doubled in less than a decade.

Debt accumulated across Trump's two terms totals $11.6 trillion to date. During former President Joe Biden's tenure, the debt grew by $8.4 trillion.

Analysts point to massive fiscal spending to combat COVID-19, tax cuts, and rising social security and healthcare costs as the main drivers of the surge.

Concerns are also growing over the interest burden tied to the ballooning debt, particularly as long-term government bond yields have spiked sharply in recent months.

According to Bloomberg, cumulative interest costs for the US government have reached $1.17 trillion for the current fiscal year — with about two months remaining before fiscal year 2026 ends — up 15 percent from the same period a year earlier.

Interest payments now rank as the third-largest expenditure in the federal budget.

Analysts warn of a potential vicious cycle: rising government bond yields push up interest costs, forcing additional borrowing that swells the debt further, which in turn prompts investors to demand even higher yields.

The statutory debt ceiling stands at $41.1 trillion, and the current debt level is fast approaching that limit.

If the debt continues to climb, political battles over raising the ceiling could intensify once again.

Michael Peterson, president of the Peterson Foundation, said he hopes "crossing the big, round number of $40 trillion serves as a wake-up call for Washington," adding that "failing to control the debt will increase the cost of everyday life for Americans across the country."


mokiya@heraldcorp.com