WASHINGTON, D.C. — The U.S. gross national debt reached $40 trillion in August 2026, according to the Joint Economic Committee's monthly budget update. The debt increased by an amount equivalent to $5.11 million per minute over the past year.

The total stands at a per-person and per-household level that has increased significantly over the past year. The debt grew rapidly during that period. The current figure is $2.67 trillion higher than it was one year prior and $11.68 trillion greater than it was five years prior.

The growth rate averages $7.35 billion per day and $306.4 million per hour. The per-person debt burden increased over the past year. The per-household debt burden increased over the same period.

If the current average daily growth rate continues, the U.S. is projected to reach $41 trillion in debt by mid-January 2027. The debt could reach $42 trillion by approximately June 2027 under the same conditions.

The average interest rate on total marketable U.S. national debt was 3.475% in August 2026. This compares to 3.415% in August 2025 and 1.458% in August 2021. The total amount of interest paid to trust funds on U.S. national debt over the 12 months preceding August 2026 was $294.76 billion. The average monthly interest paid to trust funds over that period was $24.56 billion.

"When the U.S. borrows this much—and continues to borrow more and more—that drives up interest rates, which then increases household expenses because your mortgage goes up, your car loan, your credit card bills, and inflation more generally," Michael Peterson, Chairman and CEO of the Peterson Foundation, said. "So [we] may not get a bill at the end of the month for national debt, but [we] are paying that bill both in the form of taxes as well as an inflated level of expenses."

U.S. federal net interest payments reached $1.25 trillion in 2025. These payments were equivalent to 18.5% of federal revenue. The ratio surpassed the previous high of 18.4% recorded in 1991.

The $1.25 trillion in annual U.S. federal net interest payments exceeds the entire U.S. defense budget for 2026. Federal interest expense as a percentage of revenue has approximately tripled since 2015.

The current $40.1 trillion national debt includes about $7.7 trillion held in trust funds for Social Security, Medicare and other government programs. It includes about $4.6 trillion in debt held by the Federal Reserve. The remaining $27.8 trillion of U.S. national debt is held by private and foreign creditors.

Debt held by private and foreign creditors is equal to about 86 percent of the U.S. economy. It is projected to hit 100 percent of the U.S. economy within a decade. Debt held by the public has risen above $32 trillion and now exceeds 100% of U.S. GDP.

The 30-year Treasury bond rate reached 5.3 percent in mid-August 2026. This rate was the highest in nearly two decades. Thirty-year Treasury yields were around 8% in 1991. In 1991, debt held by the public was approximately 44% of U.S. gross domestic product.

By 2034 the Social Security and Medicare trust funds are projected to run out of money to pay full benefits. Social Security actuaries predict steep Social Security cuts as soon as 2032 if Congress does not act. Former Speaker of the House Paul D. Ryan commented on the political challenges of addressing these issues.

"And populists believe things like debt reduction, entitlement reform is unpopular. Therefore we don’t have anything close to the politics we need to get this stuff done," Ryan said.

Why It Matters

The accumulation of debt and rising interest costs affect federal budget priorities and household finances. Interest payments now exceed defense spending, altering the composition of federal outlays. Projections indicate that interest costs will consume a quarter of federal revenue within a decade, limiting fiscal flexibility.

The impending insolvency of Social Security and Medicare trust funds adds pressure to address entitlement reform. The debt ceiling remains a point of political contention, with lawmakers divided on its use. The combination of high debt levels, rising interest rates, and demographic shifts creates a complex fiscal environment for policymakers.

Timeline

The average interest rate on total marketable U.S. national debt was 1.458% in August 2021. The average interest rate on total marketable U.S. national debt was 3.415% in August 2025.

U.S. federal net interest payments in 2025 were equivalent to 18.5% of federal revenue. The ratio of U.S. federal net interest payments to federal revenue surpassed the previous high of 18.4% recorded in 1991.

What's New

The Congressional Budget Office projects net interest paid on U.S. national debt will hit $2 trillion within a decade. The Congressional Budget Office projects that U.S. interest expense could reach 25% of federal revenue by 2036.

"And populists believe things like debt reduction, entitlement reform is unpopular. Therefore we don’t have anything close to the politics we need to get this stuff done," former Speaker of the House Paul D. Ryan said. "I’m not going to just vote for a temporary … extension so that then the next time there’s a Democrat in the White House, Republicans can again cynically use the debt ceiling," House Budget ranking member Brendan F. Boyle said.

The current $40.1 trillion national debt includes about $4.6 trillion in debt held by the Federal Reserve. "At the very least we need to make sure that we take this powerful weapon permanently off the table," Boyle said.

How Sources Differ

The Congressional Budget Office estimates that net interest paid on U.S. national debt will hit $2 trillion within a decade. The Congressional Budget Office projections state that U.S. interest expense could reach 25% of federal revenue by 2036.

The Congress Joint Economic Committee monthly budget update reports that the average monthly interest paid to trust funds on U.S. national debt over the 12 months preceding August 2026 was $24.56 billion.