The United States national debt has surpassed $40 trillion for the first time, according to data released by the US Treasury Department on Wednesday.
Treasury figures showed that debt held by the public stood at $32.266 trillion, while intragovernmental holdings amounted to $7.781 trillion, bringing total public debt outstanding to $40.047 trillion.
The milestone came months earlier than previously expected and reflects the US government’s continued spending above its revenue, resulting in annual budget deficits that add to the national debt.
The rapid increase in federal borrowing has been driven by several factors, including trillions of dollars in government spending during the COVID-19 pandemic, tax cuts and higher military expenditure.
The rising debt has fuelled concerns in financial markets, particularly over the sustainability of US borrowing and the impact on Treasury yields. Higher interest payments on the debt have also become an increasingly significant contributor to the government’s overall spending.
A monthly report by the Treasury Department showed that the US federal government recorded a fiscal deficit of $1.367 trillion during the first nine months of the 2026 fiscal year, which began on October 1, 2025.
During the period, net interest payments on the national debt reached $827 billion, exceeding the government’s $713 billion defence expenditure. Only Social Security spending, at $1.244 trillion, was higher.
US federal debt crossed the $30 trillion mark in January 2022 before exceeding $39 trillion in March 2026. It reached $39.7 trillion in July, putting the debt on course to surpass the $40 trillion threshold sooner than expected.
The latest milestone underscores the growing fiscal pressures facing the US government as it grapples with rising borrowing costs, persistent budget deficits and increasing interest obligations.
