US national debt has more than doubled in a decade to reach a milestone $40tn (£29.4tn), Treasury figures show.
The rise reflects years of heavy spending under both the Trump and Biden administrations, along with higher interest payments that have steadily added to the total. In 2016, the national debt stood at just under $20tn.
The Congressional Budget Office (CBO) had projected overall borrowing would reach $39.6tn by the end of fiscal year 2026.
The faster-than-expected rise has sharpened concerns about how quickly the government’s borrowing needs are growing and what that means for future interest costs.
The CBO said the US was nearing its $41.1tn debt ceiling, with debt projected to climb to about $64tn by 2036.
As the federal government spends more to cover its budget deficits, consumers have faced higher interest rates and inflation.
The $40.05tn, as of 18 August, covers all outstanding Treasury bonds, bills and notes, and underscores the scale of US borrowing under two presidents.
The interest rate on 30-year bonds, which are a type of debt used to raise funds from investors, hit 5.34% on Tuesday – the highest level in almost 20 years.
Those rates, known as yields, influence how much the US government, companies and consumers pay to borrow – affecting mortgages, car loans and credit cards.
The recent surge in bond yields has been driven by rising oil prices linked to the US-Iran war, with investors worried about inflation.
Credit: bbc.com
