Full Breakdown
U.S. National Debt Tops $40 Trillion Amid Rising Borrowing Costs
By Drooid · · How we work
The Debt Milestone and Market Reaction
The Joint Economic Committee reported that the total gross U.S. national debt stood at $40.10 trillion as of September 3, 2026, up $2.67 trillion from the previous year. About $32.42 trillion is held by the public. The debt is growing at roughly $7.35 billion per day.
Higher borrowing costs are evident. The 30-year Treasury yield reached 5.4 %, the highest since 2007, while the 10-year note traded at 5 % during the Treasury hearing on September 15, 2026. The average interest rate on marketable debt rose to 3.475 % in August, up from 3.415 % a year earlier. The Congressional Budget Office projects net interest will consume 13.95 % of federal outlays in FY 2026, climbing to 14.94 % by FY 2028.
Background & Context
U.S. debt has accelerated dramatically: the $10 trillion mark was passed during the 2008 financial crisis, $20 trillion in 2017, $30 trillion by early 2022, and the current $40 trillion record was reached in the summer of 2026.
Researchers note that “special tricks” such as the wartime interest-rate peg and surprise inflation were crucial in past debt reductions and are unlikely to reappear.
A newer factor is competition from corporate bonds. Major technology firms building AI infrastructure—often called “hyperscalers”—have issued over $800 billion in debt this year, offering yields only modestly above Treasuries and drawing capital away from government securities.
Data & Statistics
| Metric | Figure |
|---|---|
| Total gross debt (Sept 3, 2026) | $40.10 trillion |
| Publicly held debt | $32.42 trillion |
| Daily debt increase | $7.35 billion |
| Average interest rate (Aug 2026) | 3.475 % |
| Net-interest share FY 2026 | 13.95 % of outlays |
| AI-related corporate debt (2026) | > $800 billion |
| 30-year Treasury yield | ~5.4 % |
| 10-year Treasury yield | ~5 % (Sept 15, 2026) |
Official Statements & Responses
On September 9, Bessent announced a tripling of long-term Treasury buybacks—from $2 billion to as much as $6 billion—to temper yields.
Carsten Brzeski, chief economist at ING Bank, argued that despite investor anxiety, “the European capital market is not yet an alternative to the US market.”
Verbatim Quotes
- “The measure is, of course, far too small on its own to truly keep yields in check over the long term," Roemheld said.” — Carsten Roemheld, Fidelity International
- “The bond market [now] demands discipline," Kim Crawford, global fixed income portfolio manager at JPMorgan Asset Management, told the Financial Times.” — Kim Crawford, JPMorgan Asset Management
What’s Next
If the current daily growth rate persists, the Joint Economic Committee projects the national debt will reach $41 trillion around January 16, 2027. Treasury officials have signaled the possibility of additional buyback operations.