U.S. National Debt Surpasses $40 Trillion

America’s national debt has surged past a record $40 trillion U.S. for the first time, having doubled over the past 10 years.

The country now owes $119,500 U.S. per person.

The U.S. debt has surged since U.S. President Donald Trump returned to office in January 2025 due to expenses such as the Iran war and refunds on his invalidated tariffs.

The war with Iran has so far cost $37.5 billion U.S. in American military spending with no end to the conflict in sight.

The record debt level is a blow to Trump, who promised to cut public spending during his presidential campaign.

Economists forecast that America’s national debt will continue to grow in coming years as obligations linked to social security and healthcare steadily rise.

Interest payments on the national debt also continue to climb higher and are on track to exceed $1 trillion U.S. this year.

Total public debt outstanding reached $40.05 trillion U.S. at the close of business on Aug. 20, according to data from the U.S. Treasury Department.

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

The rising debt has played havoc with the bond market, with U.S. Treasury yields spiking earlier this week over concerns about government spending and persistent inflation.

U.S. Treasury Secretary Scott Bessent announced that the government will double its bond purchases going forward, which has helped lower yields in recent days.

Still, the surging debt has drawn criticism from lawmakers in Washington, D.C. across the political spectrum.

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

Democratic Congressman Ted Lieu accused Trump of having “ushered in the Golden Age of Debt.”

Equally concerning to economists are the budget deficits being run by the U.S. government, which now exceed $2 trillion U.S. per year.