U.S. national debt exceeds $40 trillion for first time

The U.S. national debt has surpassed $40 trillion for the first time, a milestone that underscores deepening concerns about the nation’s fiscal trajectory as the government spends far more than it collects in revenue. The Treasury Department reported that total public debt outstanding reached $40.047 trillion at the close of business on Tuesday, August 18, 2026.

The figure includes $32.266 trillion in debt held by the public and $7.782 trillion in intragovernmental debt holdings. This new threshold was crossed less than five months after the debt reached $39 trillion in March, and it represents a more than doubling since January 2017, when the debt stood at $19.95 trillion at the start of President Donald Trump’s first term.

The rapid accumulation of debt is driven by years of persistent budget deficits, where federal spending outpaces revenues. Roughly one-third of the increase since 2017 resulted from emergency borrowing to fund the COVID-19 pandemic response under both President Trump and former President Joe Biden. The remainder stems from legislative policy choices, ongoing tax-and-spending imbalances, and rising costs for mandatory social programs and interest on the debt...