The U.S. national debt reached an all-time high of $39.5 trillion according to the latest Treasury tracking, adding roughly $400 billion in about three months after crossing $39 trillion for the first time in April. The surge reflects rising interest costs as older low-rate Treasury bonds mature and are refinanced at current market yields near 4.58% for 10-year notes and 5.08% for 30-year bonds. Publicly held federal debt has moved above 100% of GDP for the first time since the years after World War II, reviving debate over federal spending, borrowing, and long-term fiscal policy as Washington faces another debt ceiling fight.
US National Debt Crosses $39.5 Trillion Milestone
The U.S. gross national debt climbed to $39.5 trillion based on the latest Treasury tracking. The total crossed $39 trillion for the first time in April and has added roughly $400 billion in about three months. The debt stood near $35 trillion in July 2024, marking an increase of more than $4 trillion over two years. Some market trackers estimated that debt rose by about $286 billion over the last 30 days.
Publicly held federal debt has moved above the size of the U.S. economy, crossing the 100% of GDP level for the first time since the years after World War II. Steve Rattner, a former Treasury official, wrote that federal debt had surpassed 100% of GDP under President Donald Trump and was on track to pass the prior record by 2030.
Net Interest Costs Projected at $1.04 Trillion for Fiscal 2026
The growing debt burden has become more expensive because older low-rate Treasury debt continues to mature. Bonds issued near 1% to 2% are being refinanced closer to current market yields, with the 10-year Treasury around 4.58% and the 30-year near 5.08%. Net interest costs are projected to reach about $1.04 trillion in fiscal 2026. Interest payments now consume roughly 14% of federal spending and rank among the fastest-growing parts of the budget.
The federal deficit is trending toward $2 trillion for fiscal 2026. The Treasury borrowed about $1.4 trillion during the first nine months of the fiscal year, reflecting continued gaps between federal revenue and spending. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, previously described the borrowing surge as "a total bipartisan abdication of making hard choices."
US Margin Debt Reaches Record $1.5 Trillion in June
U.S. margin debt reportedly jumped by $86.5 billion in June to a record $1.5 trillion, marking a third straight monthly increase. Margin debt has risen by nearly $494 billion over the past year, showing that investors are using more borrowed money to buy stocks. High leverage can support rallies during strong markets, but it can also increase selling pressure when prices fall.
Senator Lummis Supports BITCOIN Act for Strategic Reserve
Senator Cynthia Lummis continues to support the BITCOIN Act, a proposal for the U.S. Treasury to buy 1 million Bitcoin over five years as a strategic hedge against currency weakness. The Government Accountability Office has warned that the current fiscal path remains unsustainable. Washington now faces pressure to manage borrowing, interest costs, and budget reforms as the debt approaches the next major threshold near $40 trillion.
FAQ
What is the current level of US national debt?
The U.S. national debt reached an all-time high of $39.5 trillion according to the latest Treasury tracking. The total crossed $39 trillion for the first time in April and added roughly $400 billion in about three months.
Why are US interest costs rising?
Interest costs are rising because older low-rate Treasury bonds issued near 1% to 2% are maturing and being refinanced at current market yields around 4.58% for 10-year notes and 5.08% for 30-year bonds. Net interest costs are projected to reach about $1.04 trillion in fiscal 2026, consuming roughly 14% of federal spending.
What is the BITCOIN Act proposed by Senator Lummis?
Senator Cynthia Lummis supports the BITCOIN Act, a proposal for the U.S. Treasury to buy 1 million Bitcoin over five years as a strategic hedge against currency weakness.
