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National Debt Tops $40 Trillion: Where Trump's Economic Approval Stands
0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. The U.S. national debt has surpassed $40 trillion for the first time, marking a staggering new milestone in the country’s borrowing. Treasury data released on Wednesday showed total outstanding federal debt reaching roughly $40.05 trillion, with about $32.27 trillion held by the public and $7.78 trillion in intragovernmental holdings. The debt has more than doubled since 2017, underscoring the scale of the government's long-term fiscal challenges.
The national debt when President Donald Trump entered the Oval Office for his second term was roughly $36.22 trillion, marking an escalation of about $3.83 trillion thus far under his current tenure.
Interest payments have also become an increasingly significant burden, while Social Security, Medicare and defense spending account for major portions of federal outlays. The Congressional Budget Office (CBO) projects that debt held by the public will rise from about 101 percent of gross domestic product (GDP) in 2026 to 120 percent by 2036.
The debt milestone also comes at a difficult political moment for Trump, whose economic approval ratings have declined amid concerns over inflation, gas prices, cost of living and the war with Iran.
Newsweek reached out to the White House via email on Wednesday night for comment.
The national debt represents the total amount of money the federal government has borrowed over time to cover spending that exceeds its revenues. While the $40 trillion milestone reflects decades of borrowing under presidents and Congresses of both parties, the president can have an influence on the trajectory of the debt through policies involving taxes, government spending and economic growth.
For example, tax cuts that reduce federal revenue or new spending programs can increase budget deficits, while policies that boost economic growth and government revenues can help improve the government's fiscal position. The CBO currently projects a $1.9 trillion federal deficit for fiscal year 2026.
Still, the national debt is not something a president can control alone. Congress ultimately plays a central role in determining federal taxes and spending, and much of the debt reflects policies and commitments built up over many administrations. The $40 trillion milestone itself reflects borrowing under both Republican and Democratic presidents, including spending during the COVID-19 pandemic and long-running costs associated with programs such as Social Security, Medicare and interest on the debt.
Mark Williams, master finance lecturer at Boston University's Questrom School of Business, told Newsweek via email on Wednesday night, "In surpassing $40 trillion in cumulative debt, the White House is ignoring basic economic fact: greater debt eventually leads to higher interest costs and increased inflation. US debt is also growing more rapidly than the country’s Gross Domestic Product, demonstrating that mountainous debt levels are producing diminished economic benefit."
Williams continued: "Current White House tax policies have pressured the government to make up for revenue shortfalls by raising U.S. borrowing levels. As the government continues to issue more debt, it will spike the cost of borrowing and reduce consumer spending. This crowding-out effect will also slow economic growth and could push the U.S. into recession. While U.S. debt levels are hitting historic highs, this trend could be reversed if policymakers rolled back tax cuts and reduced benefit spending. However, both areas are political 'third rails' and most likely not be acted upon."
Williams concluded that the United States is "not only the largest issuer of debt, but also the largest holders of intragovernmental debt, proving that it simultaneously produces and benefits from its own borrowing. Unlike consumers and businesses, the government borrowers to meet its obligations regardless of the cost of borrowing. This disconnect with the cost of borrowing does not bode well for consumers and businesses as we head towards 2027."
The CBO has warned that rising debt and interest costs can press the broader economy, including by increasing borrowing costs and reducing private investment. However, the economic impact of higher debt depends on a range of factors, and the $40 trillion milestone alone does not necessarily mean the U.S. is directly headed for higher inflation or a recession.
A recent Reuters/Ipsos poll found Trump's overall approval at 33 percent, with 64 percent disapproving—the lowest rating of his presidency. The survey also found Democrats narrowly overtaking Republicans as the party voters prefer to handle the economy, 38 percent to 35 percent. The poll surveyed 1,166 U.S. adults from August 14 to August 17 and had a margin of error of 3 percent.
A survey by the pollster on the same dates found that Trump's approval rating on the economy was 29 percent and his disapproval was also 64 percent.
Other polling has similarly shown voters growing dissatisfied with Trump's handling of the economy. An NPR/PBS News/Marist poll in June found just 33 percent approving of Trump's economic performance, while 60 percent disapproved—the lowest economic approval rating recorded for him in that poll. The survey also found that gas prices and the cost of living remained significant concerns for Americans.
The poll surveyed 1,340 respondents from June 8 to June 11 and had a 3 percent margin of error.
In a poll from The Economist /YouGov earlier this month, Trump's approval on the economy was 30 percent versus a disapproval rating of 65 percent. The president's overall approval rating was 36 percent compared to a disapproval rating of 60 percent. The poll also showed that 27 percent said the state of the economy was excellent or good and 71 percent said fair or poor.
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