US Gross National Debt Surpasses $40 Trillion Amid Rising Interest Payments and Defense Spending

WASHINGTON: The US gross national debt has surged past $40 trillion for the first time, government data showed Wednesday, outstripping earlier forecasts at a pace fuelled in part by President Donald Trump's invalidated tariffs. The uptick in borrowing is a blow to Trump, who promised to cut public spending during his 2024 presidential campaign, and sparked a backlash from US representatives across the political field. The new record comes as longer-term US obligations linked to social security and health care have been growing, while interest payments have climbed as well. Total public debt outstanding stood at $40.05 trillion at the close of business Tuesday, according to data released Wednesday by the Treasury Department. That surpasses an earlier forecast by the Congressional Budget Office that overall borrowing would hit $39.4 trillion by the end of fiscal year 2026. Rising US debt comes as concerns over inflation and government spending have been driving investor worries, and the cost of borrowing has grown. The war in the Middle East has also piled pressure on Trump, costing the lives of 18 American service members and as the nearly six-month-old conflict grinds on with little sign of resolution. Defense spending shows no sign of slowing, with the US House of Representatives narrowly passing an annual defense policy bill in July that would authorize a record $1.15 trillion in funding for the Pentagon. Savings from Trump's commission to slash the US federal workforce and agencies have also been hard to quantify, with independent observers insisting figures claimed by the US government -- the Department of Government Efficiency (DOGE) website currently posts cuts of $215 billion -- fall short of actual savings. Trump's mega-wealthy ally Elon Musk, who led the cost-cutting drive, said in 2025 he believed his stint was "a little bit successful".