United States national debt surpasses $40 trillion milestone

The United States national debt has surpassed $40 trillion for the first time. This milestone follows a period of rising Treasury yields, which has increased borrowing costs for mortgages, car loans, and businesses. The 10-year Treasury yield rose to approximately 4.79% recently, up from roughly 4.20% at the start of 2026.

The Congressional Budget Office projects a $1.9 trillion deficit for fiscal 2026, representing 5.8% of gross domestic product. Debt held by the public is expected to reach 101% of GDP this year and could rise to 120% by 2036 under current law.

As the Treasury Department approaches the next debt ceiling limit, expected sometime in 2027, political discussions regarding the mechanism have emerged. While debt ceiling votes are often partisan, some lawmakers, including Representative Brendan Boyle and former President Trump, have expressed interest in permanent reforms to eliminate the debt ceiling mechanism entirely to avoid recurring fiscal dysfunction.