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The debt has more than doubled since January 2017, when Donald Trump first took office.
US President Donald Trump. (Reuters file photo)
The US national debt has crossed $40 trillion for the first time, Treasury Department data showed on Wednesday, highlighting growing concerns over the country’s widening fiscal gap, rising interest costs and mounting government obligations.
Total public debt stood at $40.047 trillion at the close of business on Tuesday, according to Treasury data cited by Reuters.
The figure includes $32.266 trillion held by the public and $7.782 trillion in intra-governmental debt. The debt has more than doubled since January 2017, when Donald Trump first took office.
AFP reported that the pace of borrowing has outstripped earlier forecasts, with Trump’s now-invalidated tariffs contributing to the recent pressure. Longer-term obligations linked to Social Security and healthcare, along with rising interest payments, are also adding to the burden.
Deficits Drive Borrowing
The US federal government has been running persistent deficits, borrowing to make up the difference between spending and revenue.
Jessica Riedl, a budget and tax fellow at the Brookings Institution, said the US had been running deficits of roughly $2 trillion in recent years, even during periods of peace and economic growth.
“It’s been well known for a while that the United States government was on a pretty unsustainable path with deficits,” Riedl told AFPadding, “Over the last few years, the United States has moved into roughly $2 trillion deficits, even during peace and prosperity.”
Reuters reported that around one-third of the debt increase since 2017 came during the COVID-19 pandemic, when the Trump and Biden administrations borrowed heavily to fund emergency measures. The rest reflects policies under both presidents, along with longer-running imbalances between government spending and tax revenues.
Budget watchdogs have warned that lawmakers may need to raise taxes, reduce spending or take both steps to prevent a deeper fiscal crisis.
Borrowing Costs Raise Concerns
The debt milestone comes as US borrowing costs have climbed. Yields on long-term Treasury bonds reached their highest level in nearly two decades this week as investors demanded greater compensation amid concerns over government borrowing, inflation and geopolitical risks.
US Treasury Secretary Scott Bessent on Wednesday announced plans to double the size of Treasury buybacks for 10- to 30-year bonds to at least $4 billion per operation, in an effort to support the long-term bond market.
Foreign investors, who hold nearly one-third of US Treasury securities, have also reduced their holdings over the past year, adding to concerns about demand for US debt.
(With inputs from agencies)
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