U.S. debt surpasses $40 trillion, raising concerns

Total U.S. debt has surpassed $40 trillion for the first time, according to the Treasury Department.The rising debt highlights concerns over a potential fiscal crisis due to escalating costs for social programs and interest payments, which are outpacing revenues hindered by tax cuts.

Debt concerns rise

The total public debt stands at $40.047 trillion, which includes $32.266 trillion in Treasury securities and $7.782 trillion in intra-governmental debt.

Debt has more than doubled since President Donald Trump took office in January 2017, primarily driven by borrowing to address the COVID-19 pandemic.

Budget watchdog groups warn that without fiscal reforms, a debt crisis may emerge as U.S. creditors express concern over high bond yields and government borrowing.

U.S. Treasury Secretary Scott Bessent recently announced increased buyback sizes for 10- to 30-year Treasuries in an attempt to manage rising yields.

Demand for U.S. debt among foreign investors has reportedly declined over the past year, leading to increased market volatility.

Spending implications

The Treasury faced a $432 billion deficit for July, with social program costs continuing to rise.

Public debt increased by $7.8 trillion during Trump’s first term, with substantial growth attributed to pandemic responses.

Since January 2025, the debt has further grown by $3.8 trillion under Trump’s second presidency.

President Joe Biden’s term has also seen an $8.4 trillion increase in debt due to COVID-19 recovery spending and infrastructure investments.

Factors such as mandatory spending for Social Security and Medicare are leading to budget constraints, as debt service costs now exceed military funding for the first time.

The growing expense of funding healthcare and retirement benefits for the aging population continues to strain the federal budget.