The U.S. national debt hit a record high this week, surpassing $40 trillion for the first time ever. A Treasury statement showed total public debt outstanding at $40.047 trillion on Tuesday, signaling that the government is borrowing at a record pace.
This staggering milestone represents more than double the debt levels seen a decade ago, with the amount having doubled since 2017. Heavy borrowing, increased spending, and tax cuts by both Democratic and Republican administrations have long raised concern.
Defense costs, social programs, and interest on the burgeoning deficit now make up an enormous share of federal spending. Paying interest on the accumulated debt alone now costs the government more than $1 trillion a year.
In response to a bond market rattled by surging borrowing costs, the US Treasury moved on Wednesday to double the size of its debt buybacks.