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Composite story

U.S. public debt tops $40 trillion for the first time

Treasury data put total public debt at $40.047 trillion on Aug. 18. Economists called the path unsustainable; Treasury Secretary Scott Bessent said there is “nothing magic” about the number and that the U.S. can grow its way out.

The Treasury reported total public debt outstanding at $40.047 trillion on Tuesday, Aug. 18, the first close above $40 trillion, five months after $39 trillion. Debt held by the public was about $32.27 trillion; intragovernmental holdings about $7.78 trillion. Watchdogs warned of a brewing fiscal crisis as interest costs hit $1.17 trillion so far this fiscal year. Bessent said the milestone is not magic and that America can grow out of it, and Treasury doubled long-bond buybacks. Sources disagree on how to split the rise between Trump’s two terms and Biden’s term.

Shared facts

Total U.S. public debt surpassed $40 trillion for the first time.

Bessent said the United States can grow its way out of the debt.

Treasury reported $40.047 trillion in total public debt outstanding on Tuesday, Aug. 18.

The Committee for a Responsible Federal Budget warned the trajectory is unsustainable.

Treasury Secretary Scott Bessent said there is nothing magic about the $40 trillion number.

Debt held by the public was about $32.27 trillion.

Bessent attributed part of the recent increase to Supreme Court-mandated tariff refunds.

Intragovernmental holdings were about $7.78 trillion.

Disputed facts

Sources disagree on how much of the debt rise to attribute to Trump’s terms versus Biden’s term.

Reuters

US debt crosses $40 trillion threshold after doubling under Trump and Biden

Reuters

19 Aug 2026

Facts

The $40 trillion mark came less than five months after $39 trillion.

Opinion

No opinion marked.

The New York Times

U.S. Debt Hits $40 Trillion

Matthew Cullen

19 Aug 2026

Facts

The U.S. is on track to borrow more than $2 trillion this year, including for the Iran war and tax cuts.

Whether the debt is an ominous problem or a function of economic strength is still debated.

Opinion

No opinion marked.

Bloomberg

US Public Debt Hits $40 Trillion, Raising ‘Doom Loop’ Risk

Daniel Flatley and Jorgelina do Rosario

19 Aug 2026

Facts

The debt has surged by a third in less than five years.

Hours earlier Bessent moved to rein in long-term borrowing costs from multi-year highs.

Interest costs so far in fiscal 2026 are $1.17 trillion, up 15% from a year earlier.

Opinion

Rising interest costs can feed a “doom loop” of higher rates and more debt.

The Hill

Bessent: US can ‘grow our way’ out of $40 trillion debt

The Hill

20 Aug 2026

Facts

No unique facts.

Opinion

No opinion marked.

Washington Examiner

Vance says Bessent has ‘discreet’ plan to address $40 trillion national debt

Rena Rowe

21 Aug 2026

Facts

No unique facts.

Opinion

Vance said the administration inherited a “debt bomb” from Biden and is on track to grow faster than the debt.