Overview
- Treasury figures released Tuesday, Aug. 18, 2026 put total public debt at $40.047 trillion, with about $32.266 trillion held by the public and $7.782 trillion in intragovernmental accounts.
- The government continues to run very large deficits, driven by pandemic-era spending, tax and budget choices, and a $432 billion July shortfall that kept borrowing at a rapid pace.
- Net interest costs have surged to roughly $1.1 trillion a year and recently exceeded major programs such as defense and Medicare, adding to borrowing needs and crowding other budget priorities.
- Markets have reacted to higher long-term yields and heavy refinancing needs roughly $9.7 trillion this fiscal year, prompting the Treasury to double targeted buyback sizes for longer-term securities to at least $4 billion per operation starting Sept. 9 to support liquidity.
- The Congressional Budget Office projects debt held by the public could reach about 120% of GDP by 2036 without policy changes, leaving lawmakers to choose between politically difficult spending cuts, revenue increases, or further borrowing with costs that would affect households and investment.