The US Treasury Department announced that the country's gross national debt has surpassed $40 trillion for the first time, reaching a record high of $40.047 trillion as of Tuesday afternoon. The debt has grown by over $8.4 trillion under Donald Trump and $4.3 trillion under Joe Biden, with a significant portion going towards Covid-19 relief spending. In fiscal year 2026, an additional $1.8 trillion has been added to the debt, largely due to tariff refunds totaling $100 billion. Economists warn that this high level of debt can exacerbate inflation and squeeze out other budget priorities.
Written by the local model on 2026-08-20,
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Story summary
The US national debt has surpassed $40 trillion, reaching $40.047 trillion on Tuesday afternoon, according to the Treasury Department, marking the highest level of debt in US history. It took nearly 200 years for America's gross debt to reach $1 trillion for the first time in 1981, said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. The government deficit has doubled over the last decade, and $8.4 trillion of debt was added during Donald Trump's first term, while $4.3 trillion was added under Joe Biden's presidency. $1.8 trillion in new debt has been added since October 2025, with a significant portion going towards tariff refunds totaling $100 billion, according to the Bipartisan Policy Center. Experts warn that this high level of debt could lead to a loss of confidence in the US government and higher interest rates, potentially signaling expectations of higher inflation or even a global sovereign debt retrenchment.
Written for “US National Debt Crisis” on 2026-08-31,
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Leaning score -0.40 for article 1555 (high confidence, 1 verified quote) · logged 2026-08-21
US debt reached $40tn for the first time on Wednesday, the US treasury department said, after the government deficit doubled over the last decade.
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deficit → reach → decade
The treasury’s latest debt balance showed $40.047tn on Tuesday afternoon, the highest in US history.
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balance → show → history
The milestone marks years of government spending that grew under both Donald Trump and Joe Biden.
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that → mark → Trump
During his first term, Trump approved $8.4tn worth of debt, with a huge chunk going to Covid-19 relief spending, while Biden approved $4.3tn worth of debt, according to the Committee for a Responsible Federal Budget.
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Biden → approve → Budget
In fiscal year 2026, which started in October 2025, $1.8tn has been added to the debt so far, with a big chunk of new government spending dedicated to tariff refunds, which have totaled $100bn so far, according to the Bipartisan Policy Center.
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which → start → Center
Government spending watchdog groups have anticipated for weeks the US surpassing the $40tn threshold after debt reached $39tn in March.
“For perspective
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debt → anticipate → perspective
, it took nearly 200 years for America’s gross debt to reach $1 trillion for the first time in 1981,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget in a statement.
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MacGuineas → take → statement
“$40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another.
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it → exist → way
The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad.
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we → borrow → home
The threshold was breached as Congress, currently out of session, remains at an impasse over its latest spending bill.
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Congress → breach → bill
The US House and Senate passed two different bills that would fund the federal government, which is scheduled to shut down on 30 September if a bill isn’t adopted by both chambers and signed by the president.
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bill → pass → president
Earlier on Wednesday, the US treasury announced it would double its buyback of government debt after the bond market balked at ongoing inflation and continued conflict between the US and Iran.
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market → announce → US
Though the move doesn’t increase the debt, it highlights the growing struggle the US is having in attracting investors to help take on its debt.
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US → increase → debt
