U.S. Federal Debt Surpasses $40 Trillion

The United States federal debt surpassed $40 trillion in late August 2026, reaching approximately 124% of the national GDP. Total federal liabilities and unfunded social insurance obligations grew by $11 trillion over one year, totaling at least $147 trillion as of September 30, 2026.

This fiscal trajectory has created a substantial interest burden. In fiscal 2025, 36.5% of all individual income taxes collected were used exclusively to service the national debt. The Congressional Budget Office projects this requirement will increase to 50.6% by 2036.

To address these sustainability issues, proponents are urging the outgoing Congress to pass the bipartisan Fiscal Commission Act (H.R. 3289) during the current lame-duck session. Potential legislative paths include attaching the act to a debt ceiling increase or a continuing resolution.