U.S. national debt tops $40 trillion
The U.S. national debt has surpassed $40 trillion for the first time, reaching the milestone years earlier than previous federal projections suggested, reports Qazinform News Agency correspondent.
According to the U.S. Treasury's Fiscal Data, the national debt represents the total outstanding borrowing accumulated by the federal government and includes both debt held by the public and intragovernmental holdings. Treasury data put the total at about $40.05 trillion as of August 18.
The figure has more than doubled over the past decade. In 2016, U.S. national debt stood at just under $20 trillion. The increase reflects persistent federal budget deficits and growing interest costs.
The latest level is also ahead of projections published by the Congressional Budget Office (CBO) in its February report, The Budget and Economic Outlook: 2026 to 2036. The CBO had projected debt subject to the statutory limit at $39.6 trillion at the end of fiscal year 2026.
The statutory debt ceiling is currently set at $41.1 trillion. The CBO projects debt subject to the limit will rise to $63.8 trillion by 2036, assuming the ceiling is increased as necessary. Gross federal debt is forecast to reach about $64 trillion by then.
The CBO expects large budget deficits to continue driving borrowing higher. The federal deficit is projected at $1.9 trillion in 2026 before rising to $3.1 trillion in 2036. Debt held by the public is forecast to increase from 101% of GDP this year to 120% in 2036, which would be the highest level in US history.
Interest payments are also becoming an increasingly significant burden. According to the CBO, net interest outlays are projected to more than double from $1 trillion in 2026 to $2.1 trillion in 2036, rising from 3.3% to 4.6% of GDP.
The milestone comes amid renewed pressure in the U.S. Treasury market. Long-term borrowing costs have risen sharply, prompting the Treasury Department to announce an expansion of its buyback operations for longer-dated securities.
On Wednesday, the U.S. Treasury Department said it would increase the maximum size of liquidity-support buybacks for longer-term nominal securities "by at least double," from $2 billion to at least $4 billion per operation, beginning September 9.
The CBO has warned that continued growth in federal debt could have "far-reaching implications" for the U.S. fiscal and economic outlook, including higher interest rates and reduced private investment. Under its current projections, the government is expected to borrow an additional $26 trillion from the end of 2025 through 2036.
Earlier, Qazinform News Agency reported that U.S. President Donald Trump announced the launch of a large-scale economic operation against Iran aimed at isolating the Islamic Republic.
