National Debt

The U.S. national debt has surpassed $40 trillion for the first time

This marks an historic milestone in a borrowing buildup that has accumulated over generations, through wars, recessions, tax changes, and the expansion of major federal benefit programs under presidents of both parties.

The Treasury Department reported that total public debt outstanding reached about $40.047 trillion Tuesday, according to The Wall Street Journal and The New York Times.

The number is striking, but the more significant measure for economists is debt held by the public — money the federal government owes to investors and other entities outside the federal government.

That figure is approaching the size of the entire U.S. economy, with publicly held debt already exceeding 100% of gross domestic product, according to the Journal.

The $40 trillion figure represents the cumulative result of decades of federal borrowing rather than the policies of any single administration. The United States has carried debt since its founding, when the young nation borrowed heavily to finance the Revolutionary War.

Treasury Secretary Scott Bessent has set a goal of reducing the federal deficit to 3% of GDP by 2028.

Read more about our debt