U.S. Federal Debt Reaches $40 Trillion

Why it matters locally: An increasing national debt and the rising cost of interest payments could impact federal funding for state programs and services in Rhode Island, potentially affecting infrastructure projects or social services.

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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.