US Debt Tops $40 Trillion as Deficit Hits $1.8 Trillion in 10 Months
Updated
Updated · USA TODAY · Sep 7
US Debt Tops $40 Trillion as Deficit Hits $1.8 Trillion in 10 Months
3 articles · Updated · USA TODAY · Sep 7
Summary
$40 trillion in gross federal debt puts the U.S. at about 123% of GDP after a 377% rise over the past two decades.
$1.8 trillion in deficit spending through the first 10 months of fiscal 2026—up 10% from a year earlier—shows borrowing is still climbing even with the economy on solid footing.
Interest costs now exceed national defense spending, and the report argues neither spending cuts nor tax increases look politically viable, keeping the debt trajectory intact.
The Congressional Budget Office projects debt will reach $64 trillion by 2036, a backdrop the report says supports higher inflation and interest rates than in much of the 2010s.
For investors, that environment favors companies with pricing power or inflation-linked revenue, with Apple, Ferrari, Visa and Mastercard cited as examples.
If daily interest payments now exceed defense spending, how long can the economy survive before the $40 trillion debt burden crushes future growth?
With U.S. debt crossing $40 trillion, when will soaring interest costs finally shatter the dollar's reserve dominance and trigger a market shock?
As inflation transforms massive government borrowing into a hidden tax, which resilient corporate giants are uniquely positioned to profit from the crisis?