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U.S. Debt Tops $39 Trillion, Marking a Rapid New Milestone

Watchdogs warn of an unsustainable path driven by surging interest costs alongside new war spending.

Overview

  • Treasury data show gross national debt at $39.016 trillion as of March 17, crossing the mark less than five months after first hitting $38 trillion.
  • Debt held by the public has surpassed $31 trillion, a gauge economists consider more meaningful than the gross figure that includes intragovernmental IOUs.
  • Net interest costs are projected to exceed $1 trillion in fiscal 2026, with $270 billion paid in the first three months already outpacing defense spending for that period.
  • The Congressional Budget Office projects annual deficits rising from about $1.9 trillion this year to $3.1 trillion by 2036, with debt held by the public climbing toward roughly 120% of GDP by then.
  • New near-term pressures include the U.S.-Israel war with Iran, which a White House economic adviser estimates has cost the U.S. more than $12 billion so far, as watchdogs say debt could reach $40 trillion before the fall elections.