National debt crosses $40 trillion and think tank warns: ‘The level of fiscal mismanagement is tragic

U.S. government debt has hit $40 trillion—an alarming milestone for economists who fear the nation’s fiscal policy is spiraling out of control.

It comes after the Congressional Budget Office (CBO) reported earlier this month that deficits are now so large that the U.S. Treasury is paying $3 billion a day in interest, totaling $963 billion between October 2025 (when the 2026 fiscal year begins) and July 2026. 

Treasury data for August 18 shows the closing balance for the day on public debt outstanding totaled $40.04 trillion. 

Budget watchdogs have continually called on policymakers to get America’s fiscal house in order. Proposals range from cutting annual federal deficits in half as a share of GDP, down from the current 6% to 3%, to calls to “cut up the credit cards” entirely. The White House itself has indicated it recognizes a problem, with President Trump suggesting tariffs or visa policy could help plug the budget gap: So far, data suggests it won’t be enough.

With the country’s debt-to-GDP ratio now north of 120% (a metric lenders will...