WASHINGTON, D.C. — Donald Trump stated that measuring the U.S. national debt against the total valuation of the country's natural assets presents a favorable economic outlook. Treasury data indicated the national debt totaled $39.2 trillion in June 2026.
“If you put down the value of these things, it’s like hundreds of trillions of dollars. If you kept the national debt at $40 trillion, you’re way under-levered,” Trump said. The U.S. government spent $742 billion servicing the national debt between October 2025 and May 2026. This represented a 10% increase from debt servicing costs of $674 billion during the same period in fiscal year 2025.
The Congressional Budget Office attributed the rise in debt servicing costs to a larger overall debt amount and higher long-term interest rates, partially offset by declines in short-term rates. The federal budget deficit reached $1.2 trillion for the first eight months of fiscal year 2026. Federal revenues during this period totaled $3.66 trillion, while expenditures totaled $4.9 trillion. Revenues increased by $174 billion and spending increased by $57 billion compared to the previous year.
Tariff revenues generated $189 billion during the first eight months of fiscal year 2026. This revenue covered approximately 25% of the amount required to service the debt during that period. Customs duty collections for the period exceeded the prior year by $107 billion. However, net tariff collections declined in May 2026 as refund payments began disbursement. The U.S. Supreme Court ruled in February 2026 against a portion of tariffs implemented in 2025 under the International Emergency Economic Powers Act. Following this decision, congressional documents indicate the federal government was ordered to refund approximately $129 billion. The executive branch implemented replacement tariffs following the February ruling, utilizing Section 122 of the Trade Act of 1974.
The Committee for a Responsible Federal Budget recommended that lawmakers focus on deficit reduction while considering a third budget reconciliation bill. The organization stated, “The last two reconciliation bills are projected to add nearly $5 trillion to the debt through 2035. The upcoming budget resolution should instead facilitate the passage of legislation to reduce deficits, as reconciliation is intended to do.”
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