The U.S. debt tops a record-shattering $40 trillion. Yes, with a T.
The U.S. federal debt has reached a record $40 trillion, driven by spending that significantly outpaces revenue. Interest payments on this debt have become the government's second-largest expense, trailing only Social Security.
Why it matters
The rapid accumulation of debt and rising interest costs pose significant risks to long-term U.S. fiscal stability and economic policy.
The federal debt topped $40 trillion Wednesday, a new high-water mark for red ink that shows no sign of receding.
The news, reported by the Treasury Department in its daily financial update, comes just five months after the debt surpassed $39 trillion. The government continues to pile up debt at a rapid clip, as spending outstrips revenue by more than $2 trillion a year.
"Our current fiscal trajectory is plainly unsustainable, and that's the best-case scenario," said Margaret Spellings, president of the Bipartisan Policy Center. "Even in the rosiest scenarios, we're speeding toward a cliff and refusing to turn the wheel."
The deficit widened further after the Supreme Court struck down many of President Trump's tariffs, forcing the Treasury to refund more than $100 billion in import taxes that were collected illegally.
The administration sought to blame the ballooning deficit on Democrats.
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