The total US federal debt has crossed the $40 trillion mark for the first time, highlighting the growing pressure on Washington to address rising government borrowing, interest costs and spending commitments.
According to the US Treasury Department’s latest daily statement, total public debt outstanding stood at $40.047 trillion on Tuesday. This includes $32.266 trillion in debt held by the public and $7.782 trillion in intragovernmental holdings.
The debt has more than doubled since Donald Trump first took office in January 2017, when it stood at about $19.95 trillion. A large part of the increase came during the Covid-19 pandemic, when the Trump and Joe Biden administrations borrowed heavily to support the economy and fund relief measures, reported Reuters.
Debt climbs under Trump and Biden
US debt increased by around $7.8 trillion during Trump’s first term, with more than half of that increase building up during the final nine months as the pandemic response intensified.
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Under Biden, the debt rose by about $8.4 trillion. His administration continued Covid recovery spending while also backing major investments in infrastructure, clean energy and other programmes.
Since Trump returned to the White House in January 2025, the debt has risen by another $3.8 trillion, taking the increase across his two terms so far to about $11.6 trillion.
The Committee for a Responsible Federal Budget has warned that the growing debt burden could create wider economic problems if lawmakers fail to address the gap between government revenues and spending.
"Forty trillion dollars 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," said Maya MacGuineas, president of the group, per a report by Reuters.
Rising interest costs add to pressure
According to the Reuters report, the US government is also facing a growing bill to service its debt. Annual interest costs have remained above $1 trillion since early 2024 and have more than doubled since 2020.
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In the first 10 months of fiscal 2026, interest costs surpassed Medicare spending, becoming the second-largest federal budget item after Social Security.
Higher Treasury yields can also push up borrowing costs for households and businesses, affecting mortgages, car loans and commercial credit.
Meanwhile, the US recorded a $432 billion budget deficit in July, the fourth-highest monthly deficit in its history. With debt continuing to rise, concerns over the country's long-term fiscal position are intensifying.