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NewsKPBS Public MediaAugust 19, 2026San Diego

U.S. federal debt reaches record $40 trillion

The U.S. national debt has officially surpassed $40 trillion, driven by annual spending that exceeds revenue by more than $2 trillion. This milestone follows a $100 billion refund of import taxes mandated by a Supreme Court ruling and rising interest costs on existing debt.

national debtfederal budgeteconomyinterest ratesfiscal policy
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Why It Matters

The rising national debt increases federal interest payments, which are now the government's second-largest expense, and contributes to higher interest rates for consumer loans like mortgages.

Key Facts

  • The U.S. national debt has reached $40 trillion.
  • The debt increased by $1 trillion in five months, moving from $39 trillion to $40 trillion.
  • Annual federal spending exceeds revenue by more than $2 trillion.
  • The Treasury Department was required to refund $100 billion in import taxes following a Supreme Court ruling.
  • Interest payments on the national debt are now the second-largest federal expense, behind Social Security.
  • Interest costs for the first 10 months of the current fiscal year are 15% higher than the same period last year.
  • The yield on 30-year Treasury bonds reached a 19-year high this week.
  • The average 30-year mortgage rate neared 6.7% last week.
  • Government revenue has grown by 3% this fiscal year, but spending growth has outpaced this increase.

Who's Mentioned

organizationFreddie Mac“Source for mortgage rate data.”personCarolyn Bourdeaux“Executive director of Concord Action.”personJoe Biden“Former President referenced in administration statement.”personKush Desai“White House spokesman.”personDonald Trump“President of the United States.”personMargaret Spellings“President of the Bipartisan Policy Center.”organizationTreasury Department“Reported the daily financial update regarding the debt.”