By Ethan Faverino |
The U.S. national debt has surpassed $40 trillion, adding more than $2.6 trillion over the past year as federal borrowing and interest costs continue to climb.
The Joint Economic Committee released its latest Monthly Debt Update on September 8, showing the total gross national debt stood at $40.10 trillion as of September 3.
That represents an increase of $2.67 trillion from approximately $37.43 trillion one year earlier and an increase of $11.68 trillion over the past five years.
Of the current debt, approximately $32.42 trillion is held by the public, while another $7.68 trillion consists of intergovernmental debt.
Over the past year, the national debt increased at an average rate of approximately $7.35 billion per day, $306.4 million per hour, $5.11 million per minute, and $85,112 per second.
The committee calculated that the increase over the past year alone amounts to approximately $7,806 per person and $19,804 per household. The total national debt now equals approximately $117,279 per person or $297,522 per household.
If the average daily rate of debt growth recorded over the past three years continues, the committee projects the national debt will reach $41 trillion around January 16, 2027.
At that pace, the federal government would add roughly another $1 trillion to the debt every 151 days.
The report also highlighted the growing cost of servicing the debt as interest rates remain substantially higher than they were several years ago.
As of August, the average interest rate on the federal government’s marketable debt stood at 3.475% compared with 3.415% one year earlier and 1.458% five years ago.
Higher rates increase the government’s borrowing costs as existing securities mature and the Treasury issues new debt.
The Congressional Budget Office forecasts net interest will account for 13.95% of federal outlays in Fiscal Year 2026, rising to 14.25% in Fiscal Year 2027, and 14.94% in Fiscal Year 2028.
The federal government also paid approximately $294.76 billion in interest to trust funds during the previous 12 months, averaging $24.56 billion per month.
Treasury notes continue to make up the largest portion of publicly held debt. As of August, approximately $16.21 trillion, or 50.02% is held in notes, while $7.25 trillion is in Treasury bills and $5.51 trillion is in bonds. Another $3.44 trillion is held in other securities.
About 33% of publicly held marketable debt is expected to mature within 12 months, according to the most recent data from the third quarter of FY26. The average maturity of the debt stood at 71 months as of June compared with 72 months a year earlier and 69 months in June 2021.
Despite the growing debt load, Treasury auctions continue to show demand for U.S. government securities. As of August, the bid-to-cover ratio stood at 2.97 for four-week Treasury bills, 2.53 for 10-year notes, and 2.39 for 30-year bonds.
A ratio of 2 or higher is generally considered an indication of strong demand.
The latest figures come as federal policymakers face the combination of a rapidly growing debt burden, elevated borrowing costs, and a significant portion of existing debt scheduled to mature in the near future.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
