$40,000,000,000,000: US debt breaks record

The US national debt has crossed the $40 trillion mark for the first time, according to Treasury Department data. The debt has doubled in less than a decade, and interest payments have surpassed the Pentagon budget and Medicare spending, becoming the second-largest item in the federal budget. Experts warn of a fiscal crisis.

The US national debt crossed the $40 trillion mark for the first time, according to Treasury Department data. As of Tuesday, total debt stood at $40.047 trillion, of which $32.266 trillion is in government bonds held by the public and $7.782 trillion in intragovernmental debt. In less than a decade, federal debt more than doubled from $19.95 trillion when President Donald Trump first took office in January 2017. About a third of the increase occurred in two years of debt raising to finance the COVID-19 crisis. Interest payments on the debt surpassed the Pentagon budget and Medicare spending, becoming the second-largest item in the federal budget. Experts warn of a fiscal crisis if Congress does not act to raise taxes or cut spending. Long-term bond yields have risen to their highest level in nearly two decades, and the Treasury Secretary announced a doubling of repurchases of government bonds to curb the rise in yields.