by Misty Severi
The United States’ debt reached $40 trillion for the first time in history on Wednesday, highlighting the growing fiscal challenges facing the federal government as Washington continues to run large budget deficits.
Treasury data showed that the national debt is now $40,047,425,768,420.22, with $32.26 trillion being held by the public and $7.78 trillion held by intragovernmental holdings.
The debt has continued climbing after the government crossed the $39 trillion threshold in March. The Committee for a Responsible Federal Budget said the milestone came as the federal deficit was approaching $2 trillion.
The U.S. borrowing pace has remained substantial in fiscal 2026. The federal government recorded a $432 billion deficit in July, bringing the deficit for the first 10 months of the fiscal year to approximately $1.8 trillion, according to Treasury data.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement that this record-high debt level is “staggering how predictable the fiscal decline of a global power can become.”
“$40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another. The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad,” MacGuineas said.
“Whatever motivation our elected officials need to find to finally take action – whether the worries of their constituents back home, the alarm signaled by financial markets, competition from abroad, or the consequences of failing to act – they ought to find it soon. No one knows how many more of these milestone America can take,” she added.
– – –
Misty Severi is a reporter for Just the News. Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
