US National Debt Surpasses $40 Trillion for the First Time... Mounting Interest Burden Amid High Rates

The US national debt has surpassed 40 trillion dollars for the first time in history.

According to the US Department of the Treasury on the 19th local time, the total US national debt reached 40.047 trillion dollars (approximately 55,645 trillion won) as of the previous day.

Among this, debt held by the public and others amounted to 32.266 trillion dollars, while intergovernmental debt stood to 7.782 trillion dollars.

The US national debt crossed the 30 trillion dollar mark in January 2022, ballooning by another 10 trillion dollars in about four years.

Reuters analyzed that compared to 19.95 trillion dollars when President Donald Trump began his first term in January 2017, the debt has more than doubled in less than a decade.

The debt accumulated during President Trump's two terms up to the present is estimated at a total of 11.6 trillion dollars.

During former President Joe Biden's term, the debt increased by 8.4 trillion dollars.

Large-scale fiscal spending for COVID-19 response, tax cuts, and rising social security and healthcare costs are cited as the main drivers behind the surge in debt.

In particular, as long-term Treasury yields have recently spiked, concerns are growing over the interest burden of the astronomically inflated national debt.

According to Bloomberg News, with about two months left before the end of fiscal year 2026, the US government's cumulative interest costs reached 1.17 trillion dollars, a 15% increase from the same period last year.

Interest costs are currently the third-largest expenditure item in the US federal budget.

Concerns are also being raised that a vicious cycle could persist, where rising Treasury yields increase government interest costs, and the resulting additional borrowing further drives up debt, prompting investors to demand even higher yields.

The statutory US debt limit is 41.1 trillion dollars, and the current national debt is nearing this ceiling.

If the upward trend in debt continues, political battles in Washington over raising the debt ceiling could intensify once again.

Michael Peterson, CEO of the Peter G. Peterson Foundation, said, "We hope crossing this massive 40 trillion dollar milestone serves as a wake-up call for Washington," adding, "If we fail to get our debt under control, the cost of everyday life will rise across America."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.