The US gross national debt crossed $40 trillion on August 18, reaching $40.047 trillion in Treasury Department daily statements. The milestone follows a rapid increase from $38 trillion in October 2025 and $39 trillion in March 2026. In the first 10 months of fiscal year 2026, the federal government spent $931 billion on interest payments, with annual net interest costs projected to exceed $1 trillion, rivaling defense spending and approaching Medicare outlays. Interest is now one of the three largest federal budget line items, behind Social Security and Medicare. The debt has more than doubled since January 2017, reflecting COVID-era borrowing under both the Trump and Biden administrations as well as longer-term pressures from Social Security and Medicare, tax reforms, elevated defense spending and annual deficits exceeding $2 trillion. About $32.27 trillion is held by the public, including investors, foreign governments and institutions that buy Treasury securities, while the remainder consists of intragovernmental holdings. Higher Treasury yields can raise borrowing costs across the economy, pressure growth-stock valuations, reduce the value of existing bonds and increase financing costs for companies. Fiscal pressure may also bring tighter digital-asset tax reporting and compliance requirements.