US Debt Tops $40 Trillion, Doubling Since 2017
US Debt Tops $40 Trillion, Doubling Since 2017

The News
The US national debt has topped $40 trillion, according to the Treasury Department's daily financial report released Wednesday — more than double its level in 2017.
Treasury data put the debt at $40.05 trillion as of August 18, CBS News reported. The milestone comes just five months after the debt crossed $39 trillion, NPR reported.
The reason is simple: the government is spending more than $2 trillion a year beyond what it collects in taxes, and it borrows the difference.
Timeline
Federal debt stood at less than half its current level, according to Treasury data cited by CBS News.
Net interest costs on the debt approached $1 trillion and accounted for nearly 14% of all federal spending, CBS News reported.
Congress passed the Trump administration's One Big Beautiful Bill, which the Congressional Budget Office estimates will add $4.2 trillion to the debt through fiscal year 2034.
The gross national debt passed $39 trillion.
The yield on 30-year Treasuries reached a 19-year high, NPR reported.
Treasury's daily statement shows debt of $40.05 trillion.
The figure is reported publicly.
Reactions
The White House blamed the previous administration. "President Trump pledged to clean up Joe Biden's fiscal mismanagement," White House spokesman Kush Desai said in a statement to NPR. "That's why the Trump administration has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America's debt-to-GDP ratio trending in the right direction again."
Budget watchdogs were blunter. "Our current fiscal trajectory is plainly unsustainable, and that's the best-case scenario," said Margaret Spellings, president of the Bipartisan Policy Center. "Even in the rosiest scenarios, we're speeding toward a cliff and refusing to turn the wheel."
"$40 trillion should be a wake up call. But neither Congress nor the president have a credible plan to stop it from growing," said Carolyn Bourdeaux, executive director of Concord Action, which advocates for fiscal responsibility.
Michael Peterson, CEO of the nonpartisan Peter G. Peterson Foundation, told CBS News the problem is bipartisan and long-running: "We've been running deficits for the last 26 years, and we've basically ignored a lot of the structural challenges that exist in our budget that are very well known." He added that "many administrations and many Congresses have taken steps in the wrong direction."
Not everyone is alarmed. Dean Baker, co-founder of the Center for Economic and Policy Research, told CBS News "we're going the wrong way" and pointed to rising military spending, but said tariffs and the Iran war's effect on prices are more immediate threats than the debt itself.
What's Next
The Peterson Foundation estimates the debt could reach $50 trillion within six years if Washington does not change spending or tax policy. NPR reported that Congress has so far shown little appetite for tackling the problem.
In the meantime, the bill keeps climbing. Interest costs in the first ten months of this fiscal year ran 15% higher than the same period a year earlier, NPR reported, driven by both the bigger debt and the higher rates investors now demand.
More
Interest is now the government's second-biggest expense, trailing only Social Security, and the US spends more servicing its debt than it does on national defense or Medicare.
That shows up in household budgets. Mortgage and other consumer rates tend to track long-term Treasury yields, and the average rate on a 30-year mortgage neared 6.7% last week, according to Freddie Mac. "If the Treasury rate is going up, that means your mortgage rate is going up, your car loan is going up, your credit card rates are going up," Peterson told CBS News.
Government revenues have grown 3% this fiscal year, but spending has grown faster, and the debt-to-GDP ratio has worsened since Trump returned to the White House, NPR reported. The deficit widened further after the Supreme Court struck down many of Trump's tariffs, forcing Treasury to refund more than $100 billion in import taxes collected illegally. The New York Times reported that Trump's promises to restore fiscal order have been hampered by spending on the Iran war, tax cuts and those tariff refunds. Reuters noted the debt has doubled across the Trump and Biden presidencies.
About 80% of the debt is held by the public, according to the Peterson Foundation, with more than two-thirds of that owned by domestic lenders such as mutual funds and the Federal Reserve System and the rest by foreign investors.
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