Business & Finance

US national debt exceeds $40 trillion amid rising interest costs

Federal debt has doubled over the past decade, lifting annual borrowing expenses above defense spending as the nation nears its statutory debt limit.

Updated Aug 24, 2026 · 00:32 UTC1 reports

The short version

The United States federal debt has crossed $40 trillion, doubling since 2016 due to spending programs, tax cuts, crisis responses, and higher interest rates.
Higher debt servicing costs now consume nearly 20% of tax revenue, which exceeds national defense spending and risks driving up consumer borrowing rates.
The US is approaching its $41.1 trillion debt ceiling, with Congressional Budget Office projections estimating debt could reach approximately $64 trillion by 2036.
Economists warn that while the US dollar's reserve currency status prevents an immediate crisis, elevated bond yields could compel future tax, spending, or fiscal reforms.

US national debt has surpassed $40 trillion, having doubled from just under $20 trillion at the start of 2016.[BBC News]
According to the Congress Joint Economic Committee, US debt is increasing by approximately $7.8 billion daily, or about $90,000 every second.[BBC News]
Interest payments on federal debt have grown 15% year-over-year, accounting for roughly 20% of total tax revenue and exceeding federal defense spending.[BBC News]
The US national debt-to-GDP ratio currently stands at 126%, which is lower than G7 peers Japan and Italy.[BBC News]
The Congressional Budget Office projects that total US government debt could reach roughly $64 trillion by 2036 as the country approaches its $41.1 trillion ceiling.[BBC News]

Economists note that the precise debt-to-GDP threshold that could trigger a bond market sell-off or broad financial instability remains unknown.[BBC News]
It remains uncertain whether federal policymakers will pursue tax increases, spending reductions, or other structural measures to curb deficit expansion over the next few years.[BBC News]