The numbers
The US national debt passed $40 trillion for the first time, according to the Treasury Department. The total includes money the federal government owes to creditors. The milestone comes after years of rapid borrowing. The debt has grown by trillions since the pandemic.
President Trump promised to restore fiscal order and reduce the debt burden. Instead, spending has continued to climb. The Iran war, tax cuts, and tariff refunds have all pushed the total higher. Interest payments on the debt are also growing each year.
Why the debt keeps rising
The government spends more than it collects in taxes. That gap is called the deficit. Each year's deficit adds to the national debt. Recent budgets have included large outlays for defense and domestic programs.
Tax cuts reduced revenue even as spending grew. Tariff refunds returned money to companies that paid duties. War spending added billions in emergency costs. Economists say the trend is not sustainable over the long term.
What it means
High debt levels can push up borrowing costs for the government. That can raise interest rates for businesses and consumers. Some economists warn that large debt could slow economic growth. Others say the US can manage the burden because investors still trust its bonds.
The $40 trillion figure has become a talking point in Washington. Lawmakers disagree on how to fix the problem. Republicans and Democrats blame each other for the rising debt. For now, the borrowing shows no sign of slowing.