US long-term borrowing costs ease after government steps in
The US national debt has exceeded $40 trillion, doubling in a decade due to increased government spending and higher interest payments, raising concerns about future borrowing costs. While long-term borrowing costs recently eased after government intervention, bond yields surged due to factors like the US-Iran war and significant borrowing by AI tech firms.
Why it matters
The rapidly growing national debt and fluctuating borrowing costs have significant implications for the US economy, affecting government fiscal policy, consumer interest rates on loans and mortgages, and potentially global financial stability, especially with new pressures from geopolitical events and tech investments.
Image source, Getty Images By Michael Race and Francisco Velasquez , Business reporters , Reporting from New York Published 19 August 2026 Updated 21 minutes ago US national debt has more than doubled in a decade to reach a milestone $40tn (£29.4tn), Treasury figures show.
The rise reflects years of heavy spending under both the Donald Trump and Joe Biden administrations, along with higher interest payments that have steadily added to the total. In 2016, the national debt stood at just under $20tn.
The Congressional Budget Office (CBO) had projected overall borrowing would reach $39.6tn only by the end of fiscal year 2026 , external .
The faster-than-expected rise has sharpened concerns about how quickly the government's borrowing needs are growing, and what that means for future interest costs.
The CBO says the US is nearing its $41.1tn debt ceiling, with debt projected to climb to about $64tn by 2036.
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