U.S. National Debt Reaches $40 Trillion Mark

Why it matters locally: The rising national debt and the associated higher interest rates on government borrowing could impact South Carolina's state and local government borrowing costs for infrastructure projects and other public services. Increased borrowing costs also affect businesses and consumers throughout the state.

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WASHINGTON D.C. — The United States federal debt has surpassed $40 trillion, according to daily updates from the Treasury Department. This milestone reflects an ongoing accumulation of government debt. Government spending is projected to exceed tax revenues by more than $2 trillion during the current year. This fiscal trajectory contributes to the rising national debt. Financial investors have demonstrated a response to these trends. They are demanding higher interest rates on government borrowing. These increased rates subsequently impact borrowing costs across broader economic sectors.