U.S. National Debt Reaches $40 Trillion

Why it matters locally: California, with its significant economic output and large population, is directly affected by national fiscal policy changes that may arise from increasing national debt, including potential impacts on federal funding for infrastructure and social programs that benefit the state.

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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.