US debt tops $40 trillion for the first time, Treasury says

US debt tops $40 trillion for the first time, Treasury says

“By Patrick Lancier”

TL;DR — France 24, citing AFP, reports that US Treasury debt reached $40.047 trillion after Tuesday’s bill sale. The figures were published Wednesday, 19 August, by the Treasury. It is the first time the $40 trillion mark has been crossed. The Congressional Budget Office had expected $39.4 trillion by year-end. Tuesday’s 30-year Treasury yield hit its highest level since 2007. Wednesday, Treasury said it would enlarge long-term bond buybacks from September; France 24 writes that investors were reassured and yields eased. No yield print is in the dispatch. This piece does not invent one. This is not a default.

What is $40.047 trillion, and what is $39.4 trillion?

The first number is an outstanding stock after Tuesday’s issuance, published Wednesday. The second is a CBO year-end forecast. France 24 says the rise has been faster than expected. It does not subtract 647 billion as a “miss.” Drivers named: borrowing tied to health care and Social Security, and interest costs. The same article links higher borrowing costs to inflation, Middle East conflict and energy prices. Tuesday: 30-year at a 2007 high. Wednesday: larger long-term buybacks from September. France 24: investors reassured, rates eased. No buyback size is published.

Riedl and Quakenbush: quotes, not a rating action

Jessica Riedl, Brookings Institution, to France 24: “It is well known that the federal government has a deficit pace that is not sustainable.” She puts deficits around 6% to 7% of GDP, versus 3% to 4% that used to worry markets. “That has made markets more nervous.” Caleb Quakenbush, Bipartisan Policy Center, to AFP: the path has not been addressed by Congress or administrations in a “significant or lasting” way, which could pose serious challenges in a new crisis. France 24: debt has more than doubled since 2008 and stands near 125% of GDP. Analysts note there is no debt-to-GDP level that automatically triggers a crisis, and that debt held by the public — excluding intra-governmental holdings — is the most watched gauge. Riedl: psychological thresholds alert markets.

Donald Trump promised in both terms to cut spending and shrink the annual deficit. Scott Bessent’s goal, France 24 says, was a deficit of 3% of GDP. The deficit widened in recent months, including because of tariff refunds to firms after the Supreme Court struck the tariffs down in February. Tax cuts and military spending, especially tied to the Iran conflict, “also swallowed many billions of dollars.” France 24 gives no Iran total. This article adds none.

FAQ

What is the exact Treasury figure?

$40.047 trillion after Tuesday’s sale, published Wednesday 19 August, according to France 24 / AFP.

Did CBO expect $40 trillion this year?

No. It expected $39.4 trillion by year-end.

Is a 30-year yield printed?

No. Only “highest since 2007,” Tuesday.

Is this a default?

No. A stock threshold, high yields, and larger buybacks from September.

Is 125% of GDP debt held by the public?

France 24 gives about 125% for “the country’s debt,” and separately says debt held by the public is the most watched indicator. Do not merge them.

Sources

• France 24, 20 August 2026, with AFP — $40.047tn, CBO, 30-year, Riedl, Bessent
• La Presse, 19 August 2026 — same AFP wire, $40.047tn / CBO $39.4tn

“By Patrick Lancier”