Total U.S. government debt surpassed the $40 trillion mark for the first time in history,
reaching $40.047 trillion on Tuesday, according to Treasury Department data released on Wednesday.
The total figure comprises $32.266 trillion in publicly held Treasury securities and $7.782 trillion in intragovernmental debt holdings, according to the Treasury’s daily statement of cash and debt balances.
The federal debt has more than doubled since January 2017, when it stood at $19.95 trillion at the start of Donald Trump’s first presidential term. About one-third of this increase occurred during a two-year period of heavy government borrowing to fund COVID-19 pandemic relief measures—under both Presidents Trump and Joe Biden.
The remainder of the debt growth stems from fiscal policy decisions made by both administrations, as well as the persistent imbalance between tax revenues and government spending.
On Wednesday, U.S. Treasury Secretary Scott Bessent announced that the government would double the volume of buybacks for Treasury bonds with maturities of 10 to 30 years—to at least $4 billion per operation—in an effort to lower long-term bond yields.
The term premium on 10-year U.S. Treasury bonds—reflecting the portion of the yield attributable to the perceived risk of holding the securities for a decade—reached its highest level in over 12 years this week.