The U.S. national debt has officially surpassed $40 trillion, marking a significant increase from $19.95 trillion in 2017. This rise has been fueled by over a decade of government borrowing, particularly during the pandemic when substantial funds were allocated to combat COVID-19. The debt comprises $32.266 trillion in securities purchased by citizens and $7.78 trillion in intergovernmental obligations.
Budget organizations had anticipated this milestone for weeks, warning of a potential debt crisis if lawmakers do not address the unsustainable state of public finances. Last week, the U.S. Treasury reported a substantial budget deficit of $432 billion for July, one of the largest monthly deficits in the nation’s history.
In response to questions at the White House regarding the volatility of the bond market, former President Donald Trump reassured the public, stating that Americans need not worry as the U.S. remains a “very powerful country.” Trump, who won the presidential elections in 2016 and 2024 but lost in 2020 to Joe Biden, maintained a confident stance on the nation’s financial robustness.
