economy
National Debt Crosses $40 Trillion and Think Tank Warns: 'The Level of Fiscal Mismanagement is Tragic'
U.S. government debt has hit $40 trillion—an alarming milestone for economists who fear the nation’s fiscal policy is spiraling out of control. It comes after the Congressional Budget Office (CBO) reported earlier this month that deficits are now so large that the U.S. Treasury is paying $3 billion a day in interest, totaling $963 billion between October 2025 (when the 2026 fiscal year begins) and July 2026.
TL;DR
- U.S. government debt has reached $40.04 trillion.
- The Congressional Budget Office reports U.S. Treasury is paying $3 billion daily in interest.
- Debt-to-GDP ratio exceeds 120%, increasing risk premium on U.S. loans.
- Household expenses are impacted through higher interest rates on mortgages, car loans, and credit cards.
- 94% of voters are more likely to support candidates with a plan to address national debt.
- Mandatory spending like Social Security, Medicare, and debt interest are major growth areas for spending.
- Social Security trust fund is projected to run out in under eight years, and Medicare in under seven.
- There is a lack of urgency among policymakers to address the debt crisis.