US National Debt Tops $40 Trillion for First Time, Doubled Under Trump and Biden

The total U.S. national debt has crossed the $40 trillion mark for the first time, the Treasury Department announced Wednesday. This milestone draws renewed warnings from fiscal watchdog groups about a brewing crisis, as escalating costs for social safety nets and interest payments significantly outpace revenues, which are further constrained by tax cuts.

“

Forty trillion dollars of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another.

The Treasury's latest data reveals that public debt outstanding reached $40.047 trillion on Tuesday. This figure includes $32.266 trillion in Treasury securities held by the public and $7.782 trillion in intra-governmental debt holdings. The federal government's debt has more than doubled in less than a decade, starting from $19.95 trillion when President Donald Trump took office in January 2017.

Approximately one-third of this increase is attributed to government borrowing for COVID-19 pandemic responses under both the Trump and Biden administrations. The remaining debt accumulation stems from the combined fiscal policies of both presidents and persistent imbalances in taxation and spending. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, emphasized the broad economic impact of the debt, stating, "Forty trillion dollars of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another."

“

The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad.

MacGuineas cautioned that increased borrowing exacerbates inflation, displaces other budget priorities, and leaves the nation vulnerable to emergencies. She noted the $40 trillion threshold was reached less than five months after the debt hit $39 trillion and has quadrupled in under 20 years, having taken until 1981 to reach $1 trillion. "It is staggering how predictable the fiscal decline of a global power can become," she added. Concerns are also mounting among international U.S. creditors, evidenced by rising yields on long-term Treasury bonds, as investors demand higher compensation for holding U.S. debt.

“

It is staggering how predictable the fiscal decline of a global power can become.