Debt held by public hits $32.2 trillion

All-time high of 106% in 1946 now just 6 percentage points away

The US federal government's debt held by the public reached $32.2 trillion on Thursday (local time), equivalent to 100.03% of GDP. [Getty Images]
The US federal government's debt held by the public reached $32.2 trillion on Thursday (local time), equivalent to 100.03% of GDP. [Getty Images]

The US federal government's debt has exceeded 100% of GDP, figures confirmed Thursday (local time) showed.

The federal government's debt held by the public stood at $32.2 trillion at the end of fiscal year 2026, which closed Sept. 30, equivalent to 100.03% of GDP, the Wall Street Journal reported. The ratio had stood at 99.4% at the end of the previous fiscal year.

It is the first time the debt-to-GDP ratio has surpassed 100% at a fiscal year-end since 1946, shortly after World War II — a span of 80 years. The ratio at that time was 106%, an all-time high. The latest figure incorporates third-quarter GDP data released Thursday by the US Commerce Department.

The federal budget deficit for fiscal year 2026 reached approximately $2 trillion, or 6.2% of GDP. Despite the US economy posting strong growth of 3.4% in the third quarter this year, rapid government borrowing has continued to widen the debt burden.

Concerns about US fiscal health are also growing as interest costs on government bonds have climbed sharply in the wake of high interest rates.


kate01@heraldcorp.com