U.S. National Debt Surpasses $40 Trillion Milestone

The Federal government of the United States has seen its national debt surpass $40 trillion, reaching an official figure of $40,047,425,768,420.22 as of August 18. This accumulation includes $8.4 trillion added during Joe Biden's presidency and $3.8 trillion during Donald Trump's second term. The U.S. Treasury Department reported a July budget deficit of $432.3 billion, the highest since March 2021, while interest expenses reached $1.17 trillion through the first 10 months of fiscal 2026.

Economic indicators suggest growing instability, with total credit card debt hitting $1.26 trillion and seriously delinquent balances rising to 12.8% in early 2026. Internationally, the Government of China has reduced its holdings of U.S. Treasuries to $659 billion—the lowest level since 2008—while increasing gold reserves to a record $306 billion.

While some analysts warn that the debt-to-GDP ratio of 123 percent could trigger a crisis comparable to the Great Depression, Treasury Secretary Scott Bessent has downplayed the milestone. Bessent argues the U.S. can grow its way out of the burden through fiscal consolidation and global economic growth.