The US public debt reached approximately $40.047 trillion on August 18, 2026, surpassing the total size of the national economy, which was estimated at $31.9 trillion in June 2026. This debt load has more than doubled over the last ten years.
Annual interest payments on the national debt have exceeded $1 trillion for the first time in US history. Debt service has become the second-largest expenditure in the federal budget, trailing only Social Security and now outpacing spending on national defense.
By July of fiscal year 2026, net interest costs reached $963 billion, representing a 14% increase compared to the same period last year. The 30-year Treasury yield stood at around 5.34%, increasing the cost of new borrowing and variable-cost obligations.
Treasury Secretary Scott Bessent has increased long-term Treasury buybacks to support market liquidity. Meanwhile, the Congressional Budget Office projects that public debt could reach 120% of GDP by 2036, while the Government Accountability Office suggests it could hit 251% of GDP by 2056 if current policies remain unchanged.
The rapid arrival of the $40 trillion milestone was partly driven by trade policy changes and tariff shifts that disrupted federal revenue streams. The next breach of the statutory debt limit is expected in mid-to-late 2027.
