U.S. Federal Debt Reaches $40 Trillion

Why it matters locally: While the impact of the federal debt is broad, New Hampshire residents may experience indirect effects through potential federal budget cuts to programs or services the state relies upon, or through the broader economic implications of increased interest payments.

WASHINGTON – The U.S. federal debt reached $40 trillion this week, marking a new financial milestone. This figure represents a doubling of the federal debt since 2017. The government currently allocates over $1 trillion annually to cover interest payments on this accumulated debt. Investors purchasing government bonds have increased their demands for higher interest rates as the debt load grows.