U.S. National Debt Reaches $40 Trillion

Why it matters locally: As a federal district, the District of Columbia is particularly susceptible to the direct and indirect effects of federal fiscal policy, including potential impacts on federal employment, agency operations, and funding for local programs that rely on federal contributions.

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The United States national debt exceeded $40 trillion on Wednesday. This figure represents a new record. Defense spending, social programs such as Social Security and Medicare, and interest payments on the existing debt collectively account for a substantial portion of federal expenditures.