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US public debt tops $40 trillion as interest costs outpace revenues
Treasury data showed total public debt of $40.047 trillion on Tuesday, including $32.266 trillion held by the public and $7.782 trillion in intra-governmental debt.
Total U.S. debt surpassed $40 trillion for the first time, according to the U.S. Treasury Department data cited by Reuters, highlighting concerns that the pace of borrowing is increasingly outstripping federal revenues. The Treasury's latest daily cash and debt balances statement put total public debt outstanding at $40.047 trillion on Tuesday. That includes Treasury securities held by the public of $32.266 trillion and intra-governmental debt holdings of $7.782 trillion.
Reuters reported the federal government's IOU has more than doubled from $19.95 trillion when President Donald Trump took office in January 2017. The article attributes about one third of the increase to pandemic-era borrowing over two years under Trump and President Joe Biden, while fiscal and tax and spending imbalances account for the rest.
Budget watchdog groups have said the threshold had been approaching for weeks, warning that a debt crisis could emerge unless lawmakers address the outlook through higher taxes, lower spending, or both. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said the $40 trillion figure is felt across the economy and points to risks including inflation pressure and reduced room in the budget for other priorities. The article also notes demand from foreign investors for U.S. Treasuries has declined over the past year, while long-bond yields on Tuesday hit their highest levels in nearly two decades.