The United States national debt reached a new historical record of $40.528 trillion on October 26, according to data from the US Treasury Department. This marks the first time that federal debt has exceeded $40.5 trillion.
Of the total, $32.635 trillion is debt held by public investors, and $7.893 trillion is intra-governmental debt. The first category includes US and foreign investors, financial institutions and other holders of government securities, while the second represents liabilities between individual federal funds and institutions.
Growth of over $20 trillion
The growth of the US debt has been accelerating in recent years. The $38 trillion mark was crossed in October 2025, and $40 trillion was exceeded in August 2026. Compared to the end of fiscal 2017, when liabilities were about $20.24 trillion, the increase is now more than $20 trillion.
The pace of accumulation is related to ongoing budget deficits, in which the federal government spends more than it collects in taxes and other revenues. In fiscal year 2026, net interest expenses on the national debt alone reached $1.052 trillion, according to data cited by “Axios“. This makes debt service an increasingly large item in the budget.
Warning for another $10 trillion
The "Peter J. Peterson" Foundation predicts that the US debt could reach $50 trillion within six years if changes are not made to government spending and tax policy. The organization made the assessment in August, when the debt exceeded $40 trillion.
“If we don't reform the budget, we will reach $50 trillion in just six years,” said Michael Peterson, the foundation's CEO.Peterson also warned that higher debt leads to higher interest costs and can affect the cost of mortgages, car loans and credit cards. He pointed out that the problem is related to both spending and revenue of the federal government.
Interest rates limit Washington's options
Increasing interest costs mean that an increasing part of the federal budget is directed to servicing already accumulated debts, rather than to new programs, investments or responding to economic shocks. Analysts quoted by “CBS News“ warn that the growing debt could limit the US's ability to respond to future crises.
To slow the trend, Washington will have to change the ratio between government spending and revenue. Without such measures, the forecast of reaching $ 50 trillion remains a possible scenario within the next six years.
Sources: axios.com, cbsnews.com, apnews.com