According to the Treasury Department, the US national debt surpassed the $40 trillion mark for the first time in history, it was revealed on Wednesday. This alarming threshold was reached less than five years after the debt crossed the $30 trillion mark in January 2022, representing a growth of over a third during this period. Since 2017, the total debt volume has more than doubled.
Michael Peterson, CEO of the Peter G. Peterson Foundation, an organization that monitors financial issues, told CNN that at the current rate of development, the debt will reach $50 trillion in just six years. He warned that this jeopardizes the economy and the country's future.
In the first quarter of 2026, the national debt as a percentage of GDP reached 122.6%. According to Reuters, over two Trump terms, the national debt increased by $11.6 trillion, and during President Biden's four-year term—by $8.4 trillion.
Congressional Budget Office estimates, the nonpartisan accountant for federal legislators, suggest that the legislative package for Trump's second term, known as the 'One Big Beautiful Bill Act,' could add another $4.7 trillion to the debt.
Secretary of the Treasury Scott Bessent admitted last week that the deficit is moving in the wrong direction this year. He noted this, citing increased military spending due to the war with Iran, tariff reimpositions, and tax incentives. Bessent aims to reduce the deficit to 3% of GDP by 2028 from the level above 6% under Trump.
In the long term, it is difficult to quickly change the largest components of federal spending. Social security, Medicare, and national defense account for a significant portion of the budget, and both political parties are reluctant to cut benefits or raise taxes sufficiently to reduce the deficit.
Maya McGuinness, president of the Committee on the Federal Budget, reported on Wednesday that the rise in borrowing could trigger inflation, limit other budgetary priorities, and make the US more vulnerable to domestic emergencies and global instability. Debt growth leads to increased interest payments and mounting fiscal pressure.
Net interest payments on the national debt reached $931 billion in the first 10 months of fiscal year 2026, making debt servicing the third-largest item in the federal budget, surpassing defense spending. The cost of servicing the debt is also approaching the level of expenditures for major programs such as Social Security and Medicare, highlighting the growing share of federal spending directed toward debt servicing.
Margaret Spelings, president and CEO of the Bipartisan Policy Center, stated that 'our current fiscal trajectory is clearly unsustainable, and this is the best-case scenario.' She added that even in the most optimistic forecasts, the country 'is heading for a crash, refusing to turn the wheel.'
Experts are particularly concerned about the rise in interest expenses. Mark Goldwein from the Committee on the Federal Budget warned that 'our debt generates more debt'—a vicious cycle that can fuel inflation, increase borrowing costs, and burden household budgets.
This mechanism works as follows: growing debt and persistent deficits force investors to demand higher yields on Treasury bonds, which increases government borrowing. These higher rates then lead to increased interest rates on mortgages, auto loans, and commercial borrowing, placing a burden on consumers and businesses already weary of inflation.
According to McGuinness, 'the $40 trillion debt doesn't just exist in government ledgers; it is felt throughout the entire economy and somehow lands in people's pockets.'