The United States has reached a milestone no one celebrates: its public debt has surpassed $40 trillion for the first time in history. According to data released by the Department of the Treasury on August 19, 2026, the total liabilities stand at $40,047,425,768,420, an amount equivalent to 124% of GDP—the highest level since World War II.
Key Numbers at a Glance
- Total debt: $40.047 trillion
- Debt held by the public: $32.3 trillion
- Intragovernmental holdings: $7.8 trillion
- 30-year Treasury yield: 5.3% (highest since 2007)
- Projected interest payments (2026): $1.4 trillion
How Did We Get Here?
The growth of US indebtedness has been rapid over the past decade. The following table shows the trajectory of the public debt in recent years:
| Date | Public Debt |
|---|---|
| January 2017 (Trump takes office) | $19.95 trillion |
| October 2025 | $38 trillion |
| March 2026 | $39 trillion |
| August 2026 | $40.047 trillion |
The $40 trillion mark was reached two fiscal years earlier than the Congressional Budget Office projected—it had expected the threshold to be crossed only in 2028. The acceleration is attributed to multiple factors: pandemic stimulus programs, military spending related to the conflict with Iran, the tax cuts under the One Big Beautiful Bill Act (OBBBA), and the refund of tariffs that the Supreme Court declared illegal.
The Interest Burden: A Vicious Circle
Perhaps the most alarming figure is the cost of servicing this debt. According to estimates cited by Spanish newspaper El País, interest payments will reach $1.4 trillion this year, and within two years they are expected to surpass Social Security as the largest federal government expenditure. Debt held by private investors totals $32.3 trillion, while $7.8 trillion represent obligations between government agencies.
"Forty trillion dollars of debt do not exist solely in government accounting books; they are felt throughout the economy and ultimately hit people's pockets," warned Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
Washington’s Response
Treasury Secretary Scott Bessent announced that the department will double its buybacks of public debt in secondary markets, increasing from $2 billion to $4 billion per operation, starting September 9, 2026. The move aims to inject liquidity into the system and curb rising yields. Wall Street reacted positively: the Dow Jones rose 0.22%, the S&P 500 gained 0.24%, and the Nasdaq added 0.16%.
President Trump, meanwhile, renewed pressure on the Federal Reserve to cut interest rates, saying: "We have a very powerful country, and we are overcoming these ridiculous interest rates." But markets doubt that the Fed—now led by new governor Kevin Warsh—can loosen policy while inflation remains above target.
Global and Argentine Implications
The rise in US debt is not an isolated issue. Treasury yields serve as a global benchmark: when they climb, borrowing costs increase for all countries, including Argentina. The Argentine country risk index has already jumped to 517 basis points, its highest level since May, and sovereign bonds have been falling.
For a country seeking access to international capital markets, higher global interest rates make financing more difficult. The combination of local electoral uncertainty and external pressure creates a cocktail that investors are watching warily.
The challenge for Washington is to prevent the growth of debt and interest payments from creating a spiral that becomes increasingly hard to control. Meanwhile, markets are closely watching every move by the US Treasury, aware that the fiscal health of the world's largest economy conditions the fate of all others.