The US gross national debt crossed $40 trillion on August 18, reaching $40.047 trillion according to Treasury Department data. During the first ten months of fiscal year 2026, the federal government spent $931 billion on interest payments alone, with annual net interest costs projected to exceed $1 trillion, rivaling national defense spending. The debt has more than doubled since January 2017, with approximately $32.27 trillion held by public investors, a level approaching US GDP. Rising yields on new Treasury issuances are pressuring the broader economy, impacting equity valuations, existing bond portfolios, and corporate financing conditions, while increasing the risk of tighter regulatory scrutiny on digital asset markets.
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