U.S. national debt nearly $40 trillion as deficits continue to grow

The U.S. national debt is approaching $40 trillion, highlighting the growing fiscal challenges facing the federal government as Washington continues to run large budget deficits.

Gross federal debt stood at about $39.83 trillion as of Aug. 5, according to the Senate Joint Economic Committee. About $32.1 trillion was debt held by the public, while roughly $7.7 trillion represented intragovernmental holdings.

The debt has continued climbing after the government crossed the $39 trillion threshold in March. The Committee for a Responsible Federal Budget said the milestone came as the federal deficit was approaching $2 trillion.

The pace of borrowing has remained substantial in fiscal 2026. The federal government recorded a $432 billion deficit in July, bringing the deficit for the first 10 months of the fiscal year to approximately $1.8 trillion, according to Treasury data. 

The 10-month total had already surpassed the entire deficit recorded during fiscal 2025.

Rising borrowing costs are adding another layer of pressure. At a Treasury auction this week, the yield on 30-year government bonds reached about 5.22%, the highest level in roughly 25 years.