US National Debt Surpasses $40 Trillion for First Time Amid Heavy Interest Burden from High Rates

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

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

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

The U.S. national debt first crossed the 30 trillion dollar mark in January 2022, swelling by another 10 trillion dollars in about four years.

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

The total debt accumulated so far across President Trump's two terms is estimated at 11.6 trillion dollars.

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

Major drivers behind the sharp surge in debt include massive fiscal spending in response to COVID-19, tax cuts, and rising costs for social security and healthcare.

In particular, as long-term Treasury yields have recently surged, concerns are growing over the escalating interest burden on the astronomically bloated national debt.

According to Bloomberg News, with about two months remaining until the end of fiscal year 2026, the U.S. 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 U.S. federal budget.

Concerns have also been raised that a vicious cycle could unfold: rising Treasury yields increase the government's interest expenses, and the resulting additional borrowing further inflates the debt, prompting investors to demand even higher yields.

The statutory debt limit of the United States is 41.1 trillion dollars, and the current national debt is rapidly approaching this ceiling.

If the upward trend in debt continues, political battles in Washington over raising the debt limit are likely to reignite.

Michael Peterson, CEO of the Peterson Foundation, said, "I hope crossing this monumental 40 trillion dollar mark serves as a wake-up call for Washington," adding, "If we fail to get the debt under control, the cost of everyday life will rise across America."
※ Please note: This article was translated by AI and may contain errors.