U.S. National Debt Reaches $40 Trillion

Why it matters locally: As the seat of the federal government, the District of Columbia has a concentrated population of federal employees whose employment and programs could be directly impacted by federal budget decisions influenced by the national debt.

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The United States' national debt has reached $40 trillion. This accumulation reflects the total outstanding borrowing by the federal government. Lawmakers authorize the government's spending measures. This process includes funding for federal programs, services, and interest payments on existing debt. When government expenditures exceed revenues, the Treasury Department issues debt to cover the shortfall. Investors, including individuals, institutions, and foreign governments, purchase these debt instruments, such as Treasury bonds, notes, and bills. This $40 trillion figure represents the cumulative impact of these borrowing activities over time.