U.S. federal debt reaches 40 trillion dollars

The United States government's total debt has reached nearly $40 trillion, doubling from $20 trillion in 2017. In July 2026, the government spent $766 billion but collected far less, leaving a monthly shortfall of $432.3 billion. That is a record for any single July. Spending that month was 22% higher than in July the previous year. Interest payments alone cost $104 billion in July. Over the past year, interest payments totalled $1.4 trillion. By the end of July, the deficit for the fiscal year had already passed last year's full-year total of $1.775 trillion. Higher borrowing costs affect more than the government's budget. When the government pays more to borrow, rates also rise for home buyers and businesses.