Treasury Secretary Scott Bessent announced on August 20, 2026 that the Treasury Department would double the amount of government debt it is permitted to buy back from investors, arguing that current yields do not reflect underlying economic fundamentals. By August 21, long-term Treasury yields reached 20-year highs despite these measures.
The US gross national debt exceeded $40 trillion for the first time on August 19, 2026, reaching $40.047 trillion according to Treasury Department data. The milestone was reached after the US added $1 trillion in just five months.
The US national debt surpassed $40 trillion on August 19-20, 2026, a record milestone driven by defense costs, social programs, and interest on the growing deficit. Treasury Secretary Scott Bessent said the country could "grow its way" out of the debt.