This photo, taken on Aug. 19, 2026, shows the U.S. national debt surpassing 40 trillion U.S. dollars in New York, the United States. The U.S. national debt has surpassed 40 trillion U.S. dollars, according to data released by the Treasury Department on Wednesday. (Zhang Fengguo)

NNA News - The U.S. national debt has surpassed 40 trillion dollars for the first time in history, according to data released by the Treasury Department on Wednesday, highlighting growing pressure on the country's fiscal position.

The data showed that debt held by the public and intragovernmental holdings stood at 32.266 trillion dollars and 7.782 trillion dollars, respectively, bringing total public debt outstanding to 40.047 trillion dollars as of Tuesday. The milestone came less than five months after U.S. debt surpassed 39 trillion dollars in March 2026, reflecting the continued expansion of federal borrowing as government spending exceeds revenue.

The federal government recorded a fiscal deficit of 1.367 trillion dollars during the first nine months of fiscal year 2026, which began on Oct. 1, 2025. During the same period, net interest payments reached 827 billion dollars, exceeding defense spending of 713 billion dollars and ranking second only to Social Security spending of 1.244 trillion dollars. The growing cost of servicing the debt has added to concerns over the sustainability of U.S. fiscal policy, particularly as higher borrowing costs put additional pressure on the federal budget.

Warning signs are flashing "With debt held by the public recently exceeding the size of our economy, the deficit-to-GDP ratio running twice as high as where it should be, and interest costs exceeding our national defense budget," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said Wednesday in a statement. "Forty trillion dollars of debt doesn't exist solely on the government's ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another," MacGuineas said. "The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad." "Our current fiscal trajectory is plainly unsustainable," said Margaret Spellings, president and CEO of the Bipartisan Policy Center.

"Even in the rosiest scenarios, we're speeding toward a cliff and refusing to turn the wheel." "Federal debt is already raising the cost of living and choking out other spending and investment, threatening our economy and Americans' long-term prosperity," she added.

"Forty trillion dollars should be a wake-up call. But neither Congress nor the president has a credible plan to stop it from growing," said Carolyn Bourdeaux, executive director of Concord Coalition and Concord Action Fund. "We owe the next generation better than this crushing debt and another hollow promise that someone else will deal with it later."

In response, White House spokesman Kush Desai said U.S. President Donald Trump had pledged to address the country's fiscal position. "That's why the Trump administration has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America's debt-to-GDP ratio trending in the right direction again."

The $40 trillion milestone has renewed debate over the balance between government spending, taxation, economic growth and the rising cost of servicing federal debt.