US debt hits $40 trillion: Who does Washington owe and why does it matter?
Summary
The United States’ total debt has passed $40 trillion for the first time. Debt has grown quickly in recent years due to government spending on crises like the COVID-19 pandemic and lower tax revenues, raising concerns about the country’s financial future.Key Facts
- US debt exceeded $40 trillion in 2024, according to the Treasury Department.
- Debt has more than doubled since President Trump’s first term began in 2017, growing from about $20 trillion.
- The COVID-19 pandemic was a major factor, linked to about one-third of debt added since 2017.
- Debt increased by $7.8 trillion during Trump’s first term and by $3.8 trillion since he returned to office in 2025.
- Under the Biden administration, debt rose by $8.4 trillion between 2021 and 2025.
- The Congressional Budget Office predicts US debt will grow to 120% of the country’s total economic output by 2036.
- High debt growth is caused by crisis spending and tax revenue not keeping pace with government spending.
- A significant portion of spending goes to Social Security and healthcare for an ageing population.
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