U.S. national debt has surpassed the $40 trillion mark for the first time in history. As of August 18, the total debt reached $40.047 trillion, with more than $32.2 trillion in Treasury bonds held by investors. This was reported by Reuters, citing data from the U.S. Department of the Treasury, as reported by Dengi.ua.

Another $7.782 trillion consists of domestic debt, the publication notes. Thus, a new all-time high was recorded less than five months after U.S. debt reached $39 trillion.

How Fast Is the Debt Growing?

The pace of U.S. debt accumulation has accelerated significantly in recent years. In January 2017, when Donald Trump first took office as president, the debt stood at $19.95 trillion.

Since then, it has increased by approximately $20.1 trillion and more than doubled from its level at the start of 2017. About one-third of the increase during this period was due to massive government borrowing related to the COVID-19 pandemic.

During Trump’s first term, the national debt grew by approximately $11.6 trillion, while during Joe Biden’s four years in office, it has grown by another approximately $8.4 trillion.

Looking at a longer period, U.S. national debt has quadrupled in less than 20 years.

The U.S. Spends $1.1 Trillion on Interest Alone

One of the main problems is the cost of servicing the debt. Currently, the U.S. government spends about $1.1 trillion a year on interest payments.

In the first ten months of fiscal year 2026, interest payments already exceeded spending on Medicare. As a result, they have become the second-largest item of federal spending after Social Security.

At the same time, the budget deficit is growing. In the first ten months of the current fiscal year, it has already surpassed the total for the entire previous year. In July, the deficit reached $432 billion - the fourth-largest monthly deficit in U.S. history.

How National Debt Affects Loans and Markets

The rise in borrowing is affecting not only the federal budget but also the financial markets. This week, the yield on 30-year U.S. Treasury bonds rose to its highest level in nearly 20 years.

Rising yields on government securities typically lead to higher borrowing costs for other participants in the economy. As a result, mortgages, auto loans, and business loans may become more expensive.

Thus, the record-high U.S. national debt is becoming not only a problem for federal finances but also a factor that can influence the cost of borrowing for companies and citizens.