The U.S. national debt surpassed $40 trillion on Wednesday, reaching $40.05 trillion as of Aug. 18 — more than double its 2017 level — after the July deficit swelled to a record on surging debt-service costs.
The milestone arrived just five months after the debt crossed $39 trillion, with the government adding $14 billion in new debt daily during July. Interest now ranks as the second-largest federal expense after Social Security, exceeding defense spending and consuming 15% of all outlays, as the yield on 30-year Treasuries hit a 19-year high this week.
Debt held by the public stands at $32.3 trillion, having exceeded the size of the entire economy this spring. The Congressional Budget Office projects the debt-to-GDP ratio will climb to 175% by 2056, while the Peterson Foundation estimates the debt could reach $50 trillion within six years absent policy changes.