Overview
- The Treasury reported total public debt outstanding at $40.047 trillion, a sum that includes about $32.266 trillion held by the public and $7.782 trillion in intra‑governmental accounts, marking the first time the national tally has exceeded $40 trillion.
- The government ran a $432.3 billion deficit in July and a year‑to‑date shortfall near $1.8 trillion, driving the recent spike in borrowing and increasing the pace at which the overall debt has grown.
- Interest costs have climbed to roughly $1.1–$1.2 trillion year‑to‑date, making debt service one of the largest federal outlays and raising the share of the budget consumed by interest payments.
- Long‑term Treasury yields have risen to the highest levels in nearly two decades, prompting Treasury Secretary Scott Bessent to double 10‑ to 30‑year buyback sizes to at least $4 billion per operation to try to calm the market.
- Analysts warn the trend is unsustainable without policy changes and the CBO projects publicly held debt could reach about 120% of GDP by 2036, a trajectory that would crowd out other spending and raise borrowing costs for households and businesses.