US national debt surpasses $40 trillion

The United States national debt has surpassed $40 trillion for the first time. The Treasury reported that the debt grew by $1 trillion in just over three months, with a single-day increase exceeding $60 billion.

To manage rising long-term borrowing costs, Treasury Secretary Scott Bessent is implementing a strategy involving increased issuance of short-term Treasury bills and expanded buyback operations for longer-dated securities. T-bill issuance is expected to reach $1 trillion as the government seeks to stabilize yields on 10- to 30-year securities. Currently, T-bills account for nearly 22% of the total national debt, exceeding the 15% to 20% range recommended by the Treasury Borrowing Advisory Committee.

Total interest payments on the national debt are projected to exceed $1 trillion in the current fiscal year, a figure surpassing the United States' defense spending. The Treasury General Account maintains a cash reserve of approximately $950 billion to provide flexibility in debt issuance timing.