US NATIONAL DEBT EXCEEDS $40 TRILLION FOR FIRST TIME

The United States gross national debt surpassed $40 trillion for the first time, according to Treasury Department data released on Wednesday. Total public debt outstanding reached $40.05 trillion at the close of business on Tuesday. This figure exceeds an earlier forecast by the Congressional Budget Office of $39.4 trillion by the end of fiscal year 2026. The increase reflects rising borrowing costs, growing interest payments and long-term obligations linked to social security and healthcare.

Public debt has surged by approximately one-third in less than five years, with the $30 trillion mark crossed only in January 2022. Yields on long-term Treasury bonds rose to their highest level since 2007, reflecting price pressures and concerns over deficit spending. The US government operates at a deficit and borrows to cover obligations including defence spending and tax cuts. According to Jessica Riedl, a budget and tax fellow at the Brookings Institution, the United States has moved into roughly $2 trillion annual deficits in recent years, with deficit levels now closer to six to seven per cent of gross domestic product compared with the three to four per cent that historically concerned financial markets.

The mounting debt has prompted calls for action from senior officials. US Treasury Secretary Scott Bessent stated that addressing deficits running at unprecedented levels outside major wars, pandemics or severe recessions was a key reason for his involvement in politics. However, political obstacles to debt reduction remain significant. Republicans have long opposed revenue-raising tax increases, whilst both major parties have been reluctant to support cuts to healthcare and retirement benefits for senior citizens, and many observers anticipate Congress will only act if forced by financial-market disruption.