US National Debt Nears $40.4 Trillion After Rising by Almost $400 Billion in Two Months

The United States’ national debt has increased by nearly $400 billion in approximately two months, approaching $40.4 trillion and intensifying concerns about government borrowing, interest payments and long-term fiscal sustainability.

According to figures cited by Russia’s TASS news agency, the US national debt reached a record $40 trillion on August 19, 2026, before rising by a further amount equivalent to roughly one per cent.

Economic projections cited in the report suggest that US federal debt could reach approximately 120 per cent of gross domestic product (GDP) over the next decade. At that level, the government’s debt would exceed the annual value of all goods and services produced by the American economy.

Rising interest payments add pressure

The growing debt burden is placing increasing pressure on the federal budget. The United States spends approximately $970 billion annually on interest payments, according to the figures cited in the report. Interest costs have reportedly increased nearly threefold since 2020, putting additional pressure on government finances.

Higher interest payments can reduce the funds available for other priorities, including defence, healthcare, social programmes and infrastructure. If borrowing costs remain elevated, refinancing existing debt and financing new spending could become more expensive.

The report also cited the Peterson Institute for International Economics as warning that US national debt could reach $50 trillion within six years if spending and tax policies are not reformed.

Long-term fiscal concerns

Economists are increasingly focused not only on the overall size of federal debt but also on the speed at which interest costs are rising. Persistent deficits can increase the government’s financing needs, while higher borrowing costs can make it more difficult to stabilise the debt burden.

The implications will depend on economic growth, tax revenues, government spending decisions and future interest rates. The figures underline the scale of the fiscal challenge facing Washington as policymakers weigh spending commitments against the need to maintain sustainable public finances.