US public debt surpasses $40 trillion for the first time

Published Aug 19, 10:01 PM UTC

On August 19, 2026, the U.S. Treasury Department reported that U.S. public debt has exceeded $40 trillion for the first time, reaching $40,047 billion. This milestone was driven by increased borrowing for health and social security programs, as well as rising interest payments. The debt increase outpaced the Congressional Budget Office's forecast of $39.4 trillion by year-end. A Supreme Court decision in February that annulled a large portion of customs duties forced the government to repay companies, further widening the deficit. The debt now represents nearly 125% of U.S. GDP, up from just over 64% during the financial crisis. The federal government has not presented a balanced budget since the early 2000s, with deficits ranging from 5.2% to 6.2% of GDP over the past four years, and 15% in 2020 during the pandemic. Budget expert Jessica Riedl of the Brookings Institution described the deficit pace as unsustainable, estimating the annual public deficit at $2,000 billion in recent years.

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