Key facts
- The U.S. national debt surpassed $40 trillion for the first time on August 18.
- The gross national debt reached $40,047,425,768,420.22.
- Debt held by the public exceeded the U.S. GDP for the first time in approximately 80 years.
- The Congressional Budget Office (CBO) projects the debt to reach $63 trillion by 2036.
- Annual budget deficits are expected to increase significantly over the next decade.
The U.S. national debt has reached a new historic high, surpassing $40 trillion for the first time. This significant milestone, recorded on August 18, reflects persistent federal budget deficits, escalating interest costs due to higher debt levels and interest rates, and increased spending on entitlement programs like Social Security and Medicare, driven by an aging population.
Data from the Treasury Department confirmed the gross national debt at $40,047,425,768,420.22. This follows closely behind the $39 trillion threshold crossed in March and the $38 trillion mark reached in October 2025. Notably, debt held by the public recently exceeded the nation's gross domestic product (GDP) for the first time in approximately 80 years, a trend projected to continue and surpass the post-World War II record of 106% of GDP.
The Congressional Budget Office (CBO) forecasts that the gross national debt will climb to $63 trillion by 2036. Annual budget deficits are also expected to widen, from an estimated $2.1 trillion in the current fiscal year to $3.1 trillion annually a decade from now. Michael A. Peterson, CEO of the Peter G. Peterson Foundation, highlighted the doubling of the national debt in under 10 years and warned of its impact on interest costs, economic growth, and inflation, potentially affecting mortgage rates, car loans, and credit card bills for all Americans.