U.S. Federal Debt Reaches $40 Trillion

Why it matters locally: Wyoming, like all states, relies on federal funding for various programs, and increased national debt could lead to future cuts or shifts in federal allocations that impact state budgets and services.

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.