The United States gross national debt surpassed $40 trillion for the first time, reaching $40.047tn as government deficits doubled over the past decade. The milestone arrives amid a congressional spending impasse and a Treasury decision to double its debt buybacks.
The gross national debt reached $40tn for the first time on Wednesday, according to the Treasury Department. The latest debt balance hit $40.047tn on Tuesday afternoon, marking the highest level in United States history.
This historic threshold follows a decade that saw the national deficit double. The accumulated borrowing reflects spending growth under both the Donald Trump and Joe Biden administrations.
Decade of Borrowing Under Trump and Biden
During his first term, Donald Trump approved $8.4tn in debt, driven in large part by COVID-19 relief spending. Joe Biden subsequently approved $4.3tn in debt, according to figures from the Committee for a Responsible Federal Budget.
In fiscal year 2026, which commenced in October 2026, another $1.8tn has been added to the national ledger. A substantial portion of this recent government spending is dedicated to tariff refunds, which have reached $100bn so far, as reported by the Bipartisan Policy Center.
Government spending watchdog groups anticipated the $40tn threshold for weeks after the national debt crossed $39tn in March.
“For perspective, it took nearly 200 years for America’s gross debt to reach $1 trillion for the first time in 1981.”
Maya MacGuineas, president of the Committee for a Responsible Federal Budget
MacGuineas added in her statement that the $40 trillion figure extends well beyond government ledgers. She noted that the debt is felt throughout the economy and reaches household pocketbooks by exacerbating inflation, squeezing budgetary priorities, and increasing vulnerability to domestic emergencies and international turmoil.
Treasury Buybacks and Market Pressures
The historic debt milestone coincided with active intervention in the bond market. The Treasury Department announced it would double its buybacks of government debt.
That decision followed a bond market reaction against ongoing inflation and continued conflict between the United States and Iran.
Although the debt buyback maneuver does not increase the underlying national debt, it underscores the mounting difficulties the federal government faces in attracting investors willing to absorb its ongoing borrowing requirements.
Washington Budget Impasse and Looming Shutdown
The debt record arrives as Congress remains out of session and deadlocked over its latest spending legislation. Both the House and the Senate have passed competing bills to fund the federal government.
Federal funding is scheduled to expire on September 30. A government shutdown will take effect unless both legislative chambers adopt a unified spending bill and the president signs it before the deadline.
