Trump vow to control spending undone as US national debt hits a record $40 trillion
The United States national debt has surpassed $40 trillion, driven by military spending, social programs, and tax cuts. Experts warn that the rapid growth of this debt and the rising cost of interest payments signal a potential long-term fiscal crisis.
Why it matters
Record-breaking national debt levels impact global interest rates, inflation, and the long-term stability of the world's largest economy.
The United States ’ gross national debt topped $40 trillion (€34.25 trillion) for the first time Wednesday, an ominous milestone for an economy that sits on a shaky fiscal foundation after decades of borrowing to pay for the rising costs of the military, social safety net programmes and President Donald Trump ’s tax cuts.
The shortfall between what the United States spends and what it earns through taxes and other revenue now exceeds the size of its entire economy. It has grown by $3 trillion over the past year, its fastest ever pace outside the pandemic era, according to calculations by the Financial Times.
“It’s that gigantic flashing ‘check engine’ light,” said Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget think-tank.
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