U.S. Public Debt Tops $40 Trillion

The Treasury says rising long-term yields are lifting borrowing costs and it has increased buybacks as the statutory debt limit approaches in mid-2027.

Overview

The Department of the Treasury confirmed Wednesday that total U.S. public debt has surpassed $40 trillion, a milestone reached after rapid borrowing since 2017.
Treasury Secretary Scott Bessent announced the department will double buyback sizes for 10- and 30-year notes to at least $4 billion per operation to try to bring down long-term yields.
Long-term Treasury yields have climbed to multi‑year highs, pushing the government’s interest costs to about $1.17 trillion year‑to‑date and making interest the third‑largest budget item.
Fitch projects the statutory debt ceiling of $41.1 trillion will be hit around mid‑2027, a date that raises the prospect of high‑stakes partisan fights to avoid a default.
The debt surge reflects pandemic relief, tax cuts and entitlement spending, and the fall in foreign demand for Treasuries could make markets more volatile and raise borrowing costs for households and businesses.