U.S. national debt has surpassed $40 trillion for the first time, with the Treasury reporting $40.047 trillion outstanding as of Aug. 18, including $32.266 trillion held by the public and $7.782 trillion in intragovernmental holdings. The milestone came about four and a half years after debt first crossed $30 trillion in January 2022, as tax cuts, fiscal stimulus, rising Social Security and health-care costs, and higher defense spending tied to the war with Iran added to borrowing. Debt held by the public has reached 98% of GDP, and the Congressional Budget Office projects that ratio will rise to 120% in 10 years and 175% in 30 years. After the 30-year Treasury yield touched 5.33%, a 19-year high, and fiscal 2026 interest costs rose 15% from a year earlier to $1.17 trillion, the Treasury doubled long-term buybacks to at least $4 billion per operation and President Donald Trump renewed pressure on the Federal Reserve to cut rates, even as some investors argue that only fiscal tightening can address the underlying debt-and-yield spiral.