The United States gross federal debt reached a record $40.047 trillion on August 18, 2026, just five months after crossing the $39 trillion threshold. The Congressional Budget Office projects a fiscal year 2026 deficit of $2.1 trillion, with annual interest payments now exceeding $1 trillion. The debt-to-GDP ratio stands at approximately 125%, a level comparable to World War II peak spending. Total government liabilities amount to $47.8 trillion, with unfunded Social Security and Medicare obligations estimated between $79 trillion and $88 trillion over 75 years, bringing the aggregate estimate to nearly $176 trillion according to Truth in Accounting. With the statutory debt ceiling set at $41.1 trillion, the US could approach that limit in early 2027 if Congress fails to act, fueling concerns of a vicious cycle of rising yields and borrowing costs.
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