US Gross National Debt Tops $40tn for First Time
Milestone marks years of government spending that grew under both Donald Trump and Joe Biden
TL;DR
- US national debt surpassed $40 trillion for the first time.
- Government spending increased significantly under both Donald Trump and Joe Biden administrations.
- Trump approved $8.4tn in debt, with a large portion for Covid-19 relief.
- Biden approved $4.3tn in debt.
- Fiscal year 2026 has already added $1.8tn to the debt, with tariff refunds totaling $100bn.
- Watchdog groups anticipated this threshold, noting debt reached $39tn in March.
- Maya MacGuineas of the Committee for a Responsible Federal Budget highlighted the broad economic impact of debt, including inflation and budget constraints.
- The debt milestone occurs as Congress remains deadlocked on a spending bill, risking a government shutdown.
- The Treasury plans to double its buyback of government debt due to investor concerns over inflation and geopolitical conflicts.