The U.S. federal debt has reached $40 trillion, with annual interest payments now exceeding $1 trillion and ranking as the government's second-largest expense after Social Security. The debt has doubled since 2017, fueled by persistent deficits driven by tax cuts, pandemic spending, wars, and rising entitlement costs for an aging population. Higher government borrowing is pushing up consumer interest rates on mortgages, car loans, and credit cards, directly affecting Americans' wallets. While recent Treasury interventions have provided temporary relief in bond markets, experts warn that Congress will ultimately need to raise taxes, cut spending, or both to address the underlying fiscal imbalance.
Original Article Source Link:
https://www.npr.org/2026/08/20/nx-s1-5939473/40-trillion-federal-debt