US national debt surpasses $40 trillion for first time

The United States national debt has crossed the $40 trillion mark for the first time, according to U.S. Treasury data. The total debt now stands at $40.047 trillion following a bond issuance. This figure surpasses earlier projections from the Congressional Budget Office, which had anticipated the debt to reach $39.4 trillion by the end of fiscal year 2026.

The rising debt is fueled by increases in liabilities related to health and social security, alongside the interest the U.S. pays on its borrowings. Consequently, the government faces significantly higher borrowing costs. Long-term Treasury bond yields climbed to their highest levels since 2007, influenced by the conflict in the Middle East and concerns about the U.S. fiscal deficit.

This situation compels the U.S. government to refinance its debt at the highest rates seen since before the 2008 global financial crisis. The Treasury Department intervened early Wednesday to stabilize the long-term bond market and lower yields. "It has been known for a long time that the U.S. government is on a rather unsustainable trajectory regarding deficits," noted Jessica Riedl, a budget and tax specialist at the Brookings Institution. She added, "In recent years, the United States has moved to recording deficits of approximately $2 trillion, even in times of peace and prosperity."