The US gross federal debt crossed the $40 trillion threshold on August 18, 2026, reaching $40.047 trillion, meaning the government borrowed over $200 billion in roughly two weeks. Three factors accelerated this timeline: persistently elevated interest rates, debt-servicing costs now exceeding $1.2 trillion annually, and court rulings that invalidated portions of tariff revenue the Trump administration had budgeted for. Compared to fiscal year 2025, which closed at $37.64 trillion, debt has climbed approximately $2.3 to $2.4 trillion in under a year. This situation constrains the government’s ability to respond to economic downturns, fund social programs, or invest in infrastructure.
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