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US national debt surpasses record $40 trillion

By
FOX Local
Money
Published August 20, 2026 10:42 AM PDT
Published August 20, 2026 10:42 AM PDT
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An electronic display shows the national debt in Washington, DC on August 19, 2026. (Photo by Mandel NGAN / AFP via Getty Images)

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The Brief

    • The national debt for the United States has now surpassed $40 trillion for the first time in history.
    • The record amount reflects increased federal spending, including higher defense costs tied to the ongoing war in Iran, funding for social programs and rising interest payments on the national debt.
    • The national debt has continued to grow across multiple presidential administrations as the federal government spends more than it collects in taxes. 

The national debt for the United States has now surpassed $40 trillion for the first time in history. 

Big picture view:

The record amount reflects increased federal spending, including higher defense costs tied to the ongoing war in Iran, funding for social programs and rising interest payments on the national debt.

The backstory:

The national debt has continued to grow across multiple presidential administrations as the federal government spends more than it collects in taxes. In 2025, President Trump approved additional tax cuts and spending legislation that added to federal borrowing. The government also borrowed heavily during Trump's first term as it responded to the COVID-19 pandemic and the widespread economic shutdowns that followed.


 

What they're saying:

Some analysts believe the current trend could push the country back into a financial crisis. "If we want to improve our living standards, today and for the next generation, now is the time for lawmakers to put our nation on a more affordable and sustainable path," says Michael A. Peterson, CEO of the Peter G. Peterson Foundation, a think tank focused on U.S. fiscal challenges.

"Our current fiscal trajectory is plainly unsustainable, and that’s the best-case scenario," said Bipartisan Policy Center CEO Margaret Spellings. "AI disruption, a recession, global war, or any number of other events could quickly push us over the edge from a challenge into a full-blown crisis."

What's next:

Last year, Congress voted to increase the debt limit from $36.1 trillion to $41.1 trillion. However, the Bipartisan Policy Center estimates that the country will again reach the debit limit as early as late winter of 2027. 

The Source: This story was written with information provided by The Associated Press. And the U.S. Treasury Department. This story was reported from Orlando. 


 

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