US national debt exceeds $40 trillion for first time

The US gross national debt has surged past $40 trillion for the first time, government data showed Wednesday, outstripping earlier forecasts at a pace fuelled in part by President Donald Trump's invalidated tariffs.

The uptick in borrowing is a blow to Trump, who promised to cut public spending during his 2024 presidential campaign, and sparked a backlash from US representatives across the political field.

The new record comes as longer-term US obligations linked to social security and health care have been growing, while interest payments have climbed as well.

Total public debt outstanding stood at $40.05 trillion at the close of business on Tuesday, according to data released Wednesday by the Treasury Department.

That surpasses an earlier forecast by the Congressional Budget Office that overall borrowing would hit $39.4 trillion by the end of fiscal year 2026.

Rising US debt comes as concerns over inflation and government spending have been driving investor worries, and the cost of borrowing has grown.

The war in the Middle East has also piled pressure on Trump, costing the lives of 18 American service members and $37.5 billion in military spending as the nearly six-month-old conflict grinds on with little sign of resolution.

Defense spending shows no sign of slowing, with the US House of Representatives narrowly passing an annual defense policy bill in July that would authorize a record $1.15 trillion in funding for the Pentagon.

Savings from Trump's commission to slash the US federal workforce and agencies have also been hard to quantify, with independent observers insisting figures claimed by the US government -- the Department of Government Efficiency (DOGE) website currently posts cuts of $215 billion -- fall short of actual savings.

Trump's mega-wealthy ally Elon Musk, who led the cost-cutting drive, said in 2025 he believed his stint was "a little bit successful".

Republican Senator Rick Scott joined a wave of lawmakers in condemning the debt surge, urging Congress to "get spending under control and BALANCE THE BUDGET".

Democratic Senator Mark Kelly, a retired US Navy combat pilot, accused Trump of enriching himself while running up the national debt.

"The President said he'd pay off the debt in his first term. Well we all knew that was a lie," he posted.

Yields on long-term Treasury bonds rose Tuesday to the highest level since 2007, reflecting growing price pressures due to war on Iran and anxiety over US deficit spending.

The increase forces the US government to refinance debt at the highest rates since before the 2008 global financial crisis.