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U.S. Debt Tops $40 Trillion as Interest Costs Soar

By Drooid · Oct 21, 2026, 3:13 PM UTC · How we work

Summary

Story summary

U.S. public debt surpassed $40 trillion for the first time, rising by a third in under five years.
Interest payments on the $40 trillion debt reached $1.052 trillion, over 3% of GDP, exceeding the defense budget.
The federal deficit hit $2 trillion in fiscal 2026, the highest level since the COVID-19 pandemic.
The 10-year Treasury yield rose about one percentage point in 2026, one of the largest global increases.

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Story summary

U.S. public debt surpassed $40 trillion for the first time, rising by a third in under five years.
Interest payments on the $40 trillion debt reached $1.052 trillion, over 3% of GDP, exceeding the defense budget.
The federal deficit hit $2 trillion in fiscal 2026, the highest level since the COVID-19 pandemic.
The 10-year Treasury yield rose about one percentage point in 2026, one of the largest global increases.