U.S. National Debt Tops $40 Trillion as Interest Costs Rise
Treasury officials said buybacks will support market liquidity as rising interest costs and deficits push federal borrowing higher.
- On Tuesday, Aug. 18, 2026, the U.S. Treasury Department announced total public debt topped $40.047 trillion for the first time, a historic milestone driven by war spending, tax cuts, and rising interest costs.
- Spending on the war in Iran, tax cuts from the One Big Beautiful Bill Act, and rising interest payments have strained the federal budget, with interest costs now eclipsing Medicare outlays as the second-largest line item.
- Treasury Secretary Scott Bessent announced a doubling of buyback operations for long-term Treasuries to at least $4 billion per operation, aiming to stabilize yields as 30-year Treasury yields climbed to near two-decade highs.
- Projections from the Bipartisan Policy Center indicate the U.S. will reach the $41.1 trillion debt limit between late winter and mid-summer 2027, requiring Congress to vote again on raising borrowing authority.
- Fitch Ratings warned that persistent deficits leave the nation 'vulnerable to future economic shocks' as debt levels rise, threatening long-term fiscal stability despite administration claims of economic strength.
717 Articles
717 Articles
To err is human. To owe $40 trillion is Washington.
Caregiving has taught me to ask a simple question before making a consequential decision: “Is this healthy?” Will this solve today’s problem by consuming what we may need tomorrow? Does it respect the resources entrusted to me?After 40 years as a caregiver, I have learned that money, time, strength, and even goodwill are finite. Wanting something does not make it wise, and good intentions do not eliminate consequences. A caregiver who confuses d…
The Press of Atlantic City
Jill On Money: Should you worry about the $40 trillion debt?
By now, you have seen the headlines about U.S. gross debt breaching $40 trillion. As is the case when a market rises above a round number, it becomes an event. For me, it’s a chance to refresh my (seemingly) annual…
America's debt is exploding while major lenders are jumping off. Rising interest rates are exacerbating the situation – and putting pressure on the US economy.
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