US national debt hits record $40tn as borrowing rises at a historic pace, according to Treasury data released Wednesday. The debt has grown $3tn over the past year, its fastest ever pace outside the pandemic era. “It’s that gigantic flashing ‘check engine’ light,” said Marc Goldwein, senior policy director at the Committee for a Responsible Federal Budget.

Debt held by the public now exceeds $32tn, roughly equal to the size of the US economy. The Congressional Budget Office expects the debt‑to‑GDP ratio to surpass the post‑World War II high of 106 % by decade’s end and reach 120 % by 2036. Interest costs now exceed defense spending, prompting the Treasury to double purchases of long‑term bonds.

President Donald Trump returned to office pledging to curb wasteful spending, and Treasury Secretary Scott Bessent vowed to shrink the deficit to 3 % of GDP. However, the 2025 One Big Beautiful Bill Act adds more than $4tn to debt by 2034, and Trump has called for defense spending of $1.5tn. The deficit fell to 5.9 % of GDP in 2025 but remains near $2tn annually.

Analysts warn of a vicious cycle: Ed Yardeni notes rising rates increase interest expense, while Michael Peterson hopes the $40tn milestone serves as a bipartisan wake‑up call for fiscal restraint.