US national debt exceeds $40 trillion for first time amid rising borrowing
Summary
The United States national debt has passed $40 trillion for the first time, exceeding previous predictions. This increase is due to higher borrowing, interest payments, and long-term expenses like social security and health care.Key Facts
- The US national debt reached $40.05 trillion on Tuesday, August 18, 2026.
- This amount is higher than the Congressional Budget Office’s forecast of $39.4 trillion by the end of fiscal year 2026.
- Borrowing has increased partly because of President Donald Trump’s tariffs, higher government spending, and tax cuts.
- Interest costs on the debt have gone up due to rising inflation and increased interest rates.
- Long-term obligations such as social security and health costs are adding to the debt growth.
- The federal government runs a budget deficit, meaning it spends more than it collects in revenue, causing it to borrow money.
- Experts warn that current deficits are around 6-7% of GDP, which is higher than the 3-4% levels that previously concerned markets.
- Rising debt may lead to higher borrowing costs for the government, consumers, and businesses, potentially slowing economic growth.
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