US gross federal debt surpasses US$40 trillion as deficits widen
The reported debt balance equals 123% of GDP, while the Congressional Budget Office is expected to project it will reach US$64 trillion by 2036.
US gross federal debt has surpassed US$40 trillion, according to a report published by The Motley Fool and republished by Yahoo Finance, intensifying scrutiny of the fiscal outlook for the world’s largest economy.
The reported balance is 377% higher than two decades ago and equivalent to 123% of US gross domestic product. The report attributes part of the increase to government stimulus during the global financial crisis and the COVID-19 pandemic.
The Treasury Department reportedly recorded a US$1.8 trillion deficit in the first 10 months of fiscal 2026, 10% higher than in the comparable period a year earlier. The article also says federal interest payments now exceed national defence spending.
The Congressional Budget Office is reported to expect federal debt to reach US$64 trillion by 2036. The article argues that continued debt growth could contribute to higher inflation and interest rates, although those links remain forecasts rather than established outcomes.
The report says the US dollar’s reserve-currency status and the depth of its Treasury and capital markets support continued borrowing, provided investors retain confidence in repayment. It also points to companies including Apple, Ferrari, Visa and Mastercard as examples of businesses that may be resilient in such an environment, while noting that the publisher has positions in and recommends those companies.
