US national debt surpasses $40 trillion for first time

The United States national debt has surpassed $40 trillion for the first time, doubling from $19.95 trillion in January 2017. This milestone follows heavy pandemic-era borrowing under both Donald Trump and Joe Biden, alongside rising mandatory spending and interest costs. In response to soaring 30-year Treasury yields, which hit a near 20-year high of 5.34% amid deficit concerns and the U.S.-Iran war, Treasury Secretary Scott Bessent doubled bond buybacks to $4 billion. Experts warn the fiscal trajectory is unsustainable, with the $41.1 trillion debt limit looming in 2027.

$40 trillion debt milestone

• ▪The United States total public debt outstanding surpassed $40 trillion for the first time, reaching $40.047 trillion on August 18, 2026.
• ▪The $40.047 trillion total public debt outstanding on August 18, 2026, included $32.266 trillion in Treasury securities held by the public and $7.782 trillion in intra-governmental debt holdings.
• ▪The United States national debt reached the $40 trillion milestone just five months after hitting $39 trillion in March 2026, which itself occurred five months after reaching $38 trillion in October 2025.

Debt doubling since 2017

• ▪During President Donald Trump's two terms, the United States national debt increased by $11.6 trillion, including a $3.8 trillion increase since he took office for his second term in January 2025.
• ▪The United States national debt has more than doubled in less than a decade, rising from $19.95 trillion when President Donald Trump was first sworn in in January 2017.
• ▪During President Joe Biden's single term, the United States public debt increased by $8.4 trillion, driven by pandemic recovery, infrastructure investments, and clean energy subsidies.

Pandemic spending impact

• ▪Approximately one-third of the United States debt increase since 2017 occurred during two years of heavy government borrowing to fund COVID-19 pandemic responses under both Donald Trump and Joe Biden.
• ▪The Congressional Budget Office estimates that President Donald Trump's second-term legislative package, the One Big Beautiful Bill Act, will add $4.7 trillion to the United States national debt.

Rising Treasury bond yields

• ▪United States Treasury Secretary Scott Bessent announced a doubling of bond buyback operations for 10- to 30-year Treasuries to at least $4 billion per operation to lower long-term borrowing costs.
• ▪Yields on 30-year United States Treasury bonds rose to 5.34% on August 18, 2026, marking their highest level in nearly two decades, driven by deficit spending and inflation concerns linked to the U.S.-Iran war.

Fiscal crisis warnings

• ▪Budget experts warn that the growing $40 trillion national debt is raising the cost of living for Americans by increasing borrowing costs for mortgages, car loans, and credit cards.
• ▪The Bipartisan Policy Center warns that the United States is on an unsustainable fiscal trajectory and will likely reach its statutory debt limit of $41.1 trillion between late winter and mid-summer of 2027.

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