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Debt Nears $39 Trillion as CBO Tallies $696 Billion Borrowed in Four Months

Fresh CBO estimates highlight a $696 billion four‑month borrowing surge that underscores record interest costs.

Overview

  • CBO estimates show $696 billion added to the debt in the first four months of FY2026, including $94 billion in January, with watchdogs warning the pace points to another roughly $1.8 trillion deficit year.
  • Total federal debt now exceeds $38.5 trillion and is projected to approach $39 trillion by mid‑April, according to new congressional data.
  • The debt is about equal to the size of the U.S. economy, with a debt‑to‑GDP ratio near 100%, one of the highest levels since World War II.
  • Net interest costs reached $1.22 trillion in FY2025, and year‑to‑date outlays indicate FY2026 interest payments are tracking around the $1 trillion range again.
  • Analysts cite policy choices as a driver of wider deficits, noting a GOP reconciliation provision that reduced corporate tax receipts by about $22 billion, as groups renew calls for a balanced‑budget amendment.