US national debt surges past $40 trillion for first time

According to Dawn, the gross national debt of the United States has moved above $40 trillion for the first time, based on Treasury Department data released on Wednesday. Tuesday's closing figure for total public debt was $40.05tr, which tops the Congressional Budget Office's earlier projection of $39.4tr for the end of fiscal 2026. Higher borrowing has been pushed along partly by Trump's tariffs, which have since been invalidated.

The climb is a setback for Trump, who had vowed in 2024 to shrink government outlays during his campaign. Lawmakers across the political spectrum criticised the figure, with Republican Senator Rick Scott urging Congress to rein in spending and balance the budget. Democratic Senator Mark Kelly accused the president of enriching himself while the debt kept rising.

Longer-dated commitments for social security and healthcare have expanded, and interest costs have risen as well. Long-term Treasury bond yields climbed to a peak last seen in 2007 on Tuesday, meaning Washington must refinance borrowings at rates unmatched since the period before the 2008 global financial crisis. Dawn also noted the Middle East conflict, now nearly six months old with no clear end, has killed 18 American service members and driven military spending to $37.5 billion.