The United States’ national debt has climbed above $40 trillion for the first time, raising fresh concerns over the country’s fiscal outlook and drawing criticism from both Republican and Democratic lawmakers.
Figures released by the U.S. Treasury Department on Wednesday showed that the country’s total public debt reached $40.05 trillion at the close of business on Tuesday, August 18, 2026, exceeding earlier projections by the Congressional Budget Office (CBO).
The debt milestone comes amid rising government spending, increasing interest payments, and growing long-term obligations for Social Security and healthcare. Analysts also linked the faster pace of borrowing to the impact of President Donald Trump’s now-invalidated tariff policies.
The latest figures represent a political setback for Trump, who campaigned in 2024 on promises to reduce federal spending and bring the nation’s finances under control.
The country’s fiscal position has also come under pressure from the ongoing Middle East conflict, which has cost the United States an estimated $37.5 billion in military expenditure and claimed the lives of 18 American service members.
Despite concerns over the nation’s finances, defence spending continues to rise. In July, the House of Representatives narrowly approved a defence policy bill authorising a record $1.15 trillion for the Pentagon.
The Trump administration’s spending reduction efforts have also come under scrutiny. While the Department of Government Efficiency (DOGE) claims to have saved $215 billion, independent observers argue that the actual savings are far lower.
X owner Elon Musk, who headed the government’s cost-cutting initiative, previously described the programme as only “a little bit successful.”
The record debt level has fuelled political exchanges in Washington.
Republican Senator Rick Scott called on Congress to curb spending and balance the federal budget, insisting that “Americans deserve better.”
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Democratic Senator Mark Kelly also accused Trump of failing to keep his promise to reduce the national debt, alleging that the president had instead presided over a record increase while benefiting financially alongside his family.
Although economists say there is no specific debt-to-GDP ratio that automatically triggers a financial crisis, many warn that the steady rise in borrowing increases long-term fiscal risks.
The Director of Fiscal Policy at the Bipartisan Policy Center, Caleb Quakenbush, told AFP that federal borrowing accelerated during the 2007–2009 global financial crisis and expanded further during the COVID-19 pandemic.
According to him, successive administrations and Congress have failed to implement lasting reforms to address the country’s spending trajectory, warning that the current level of borrowing could pose serious challenges for financial markets if investor confidence weakens.
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