US public debt reached roughly $40.047 trillion on August 18, 2026, exceeding the approximately $31.9 trillion size of the national economy in June. The debt has more than doubled in a decade, while annual interest payments have surpassed $1 trillion and now exceed federal defense spending. Net interest costs through July of fiscal 2026 reached $963 billion, up 14% from a year earlier, as the 30-year Treasury yield stood near 5.34%. Treasury Secretary Scott Bessent has moved to expand long-term Treasury buybacks to support market liquidity, although the measure does not address the underlying fiscal imbalance. The Congressional Budget Office projects debt held by the public could reach about 120% of GDP by 2036, while the Government Accountability Office estimates 251% by 2056 if current policies remain unchanged. The next statutory debt-limit breach is expected in mid-to-late 2027, and support for a bipartisan fiscal commission has grown among business leaders and voters. Higher yields may benefit fixed-income investors but can pressure equity valuations, while rising interest costs risk reinforcing deficits unless addressed through higher revenue, spending reductions or economic growth that outpaces debt accumulation.