The US national debt has exceeded the $40 trillion mark, a development that has drawn attention to the country's economic situation. This milestone was anticipated, largely driven by increased public spending under both the Donald Trump and Joe Biden administrations.
The debt has doubled in the decade since the beginning of Trump's first presidential term in 2016, when it stood at just under $20 trillion. Rising costs for social programmes and other expenditures have outpaced revenues, which have been affected by tax cuts. Responses to financial crises and the Covid pandemic have also contributed to increased borrowing.
Higher interest rates, implemented to address recent inflation, have made funding the deficit more expensive. Interest payments on government debt are now 15% higher than the same period last year and account for almost 20% of tax revenue, exceeding defence spending.
Economists note that while the situation is not yet critical, the US is nearing its $41.1 trillion debt ceiling. The Congressional Budget Office forecasts the debt could reach approximately $64 trillion by 2036. The US's status as the world's largest economy and the dollar's role as the global reserve currency provide some buffer, but investor appetite for US government bonds is reportedly diminishing.