Vance Announces Plan to Combat $40 Trillion National Debt

The United States national debt reached $40 trillion for the first time on Wednesday, prompting a response from the administration. Vice President JD Vance announced that Treasury Secretary Scott Bessent has developed a discreet plan, supported by the president, to address the debt by ensuring the economy grows at a faster rate than the debt itself.

Treasury Secretary Scott Bessent stated that the U.S. can grow its way out of the current financial situation and pushed back against misinformation regarding the deficit to GDP ratio. Bessent noted that a portion of the current debt is linked to tariff refunds required by a Supreme Court of the United States ruling against the use of emergency tariffs.

To stabilize government revenue, U.S. Trade Representative Jamieson Greer intends to implement tariffs under Section 301 of the Trade Act of 1974. These measures are designed to replace the lapsed emergency charges, with the administration expecting 2026 tariff income to match 2025 levels.