$40 Trillion in Debt and the Interest Bill Keeps Growing
The United States has crossed $40 trillion in gross federal debt, and Washington will treat it as another unfortunate milestone before returning to the business of spending money it does not have. The more immediate problem is what it costs to carry that debt. Treasury’s figures show approximately $
Source: Armstrong Economics
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DW NOTE
Washington spent $1.8 trillion more than it collected in the first ten months of fiscal 2026, borrowed $432 billion in July alone, and now pays interest on $40 trillion in debt with the Fed holding rates at 3.65% and threatening increases. The Treasury is financing structural deficits at rates it hasn't seen in fifteen years, and every quarter-point the Fed adds will cost another $100 billion annually in debt service — money that comes from taxes or more borrowing, never cuts.