US national debt crosses $40 trillion; experts warn of ‘unsustainable’ path

US national debt crosses $40 trillion, raising concerns about higher borrowing costs, slower wage growth and tougher financial choices ahead.

US--NATIONAL DEBT-RECORD

US national debt crosses $40 trillion, raising concerns about higher borrowing costs, slower wage growth and tougher financial choices ahead.. REUTERS/Daniel Heuer/File Photo (REUTERS)

SUMMARY: The national debt has surpassed a record $40 trillion, highlighting the impact of defense costs, social programs, and interest on the deficit. This milestone comes just five months after hitting $39 trillion. Experts say the growing debt is already affecting Americans by raising borrowing costs and lowering wages.

Advocates for a balanced budget warn of tougher fiscal tradeoffs ahead. Margaret Spellings from the Bipartisan Policy Center says the fiscal trajectory is unsustainable. The U.S. is subject to a statutory debt limit, which Congress may need to address again by 2027.

WORDS: 401 - MOVED: 08/19/2026 5:14 p.m. EDT

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