U.S. National Debt Approaches $40 Trillion Mark

Why it matters locally: While a national issue, California's large economy and significant contribution to federal taxes mean that increasing national debt could have implications for federal funding directed to the state and interest rates impacting state and local government borrowing.

The United States national debt is expected to reach $40 trillion, according to projections. This upcoming figure represents a new record high for the nation's total federal borrowing. Economists view this milestone as an indicator. Lisa Desjardins, a congressional correspondent, explained that many economists consider the figure a warning sign.