Staff Reports
The latest numbers out of Washington are plain and ugly: the U.S. federal debt is almost $40 trillion, and the government keeps borrowing like there’s no tomorrow. New monthly data from the Senate Joint Economic Committee and Treasury cash flows show a stubborn climb in the national debt and a big July deficit that pushed year‑to‑date shortfalls well past last year’s total. That’s not an abstract problem — it is a growing bill we are handing to our children.
Debt Nears $40 Trillion — The Latest Numbers
According to the Senate Joint Economic Committee, gross federal debt stands at about $39.83 trillion. Of that total, roughly $32.10 trillion is debt held by the public and about $7.73 trillion is intragovernmental holdings. Those plain figures mean the government has borrowed from outside investors and borrowed internally from trust funds and other federal accounts — and the total keeps climbing by the trillions.
July’s Big Red Flag: Deficit and Year‑to‑Date Totals
The Treasury’s cash numbers for July are the immediate reason we’re moving toward $40 trillion so fast. Net outlays in July were about $766 billion while net receipts were only about $334 billion, producing a single‑month deficit near $432 billion. That pushed the fiscal‑year‑to‑date shortfall to roughly $1.799 trillion after ten months — already bigger than the whole deficit for fiscal 2025. In plain English: spending is outrunning taxes, and the gap is widening.
Rising Yields Make the Problem Worse
Debt service is not a footnote
On top of big deficits, market interest rates are rising. Long‑term Treasury yields, including the 30‑year, have climbed to levels we haven’t seen in decades. Higher yields mean higher interest payments on the debt. The Congressional Budget Office and budget watchdogs have warned this for years: rising interest costs will eat a larger slice of the budget unless policy changes. That’s effectively a stealth tax that leaves less money for priorities and forces more borrowing.
Fix It or Keep Passing the Tab
We don’t need another committee to tell us this is unhealthy. Lawmakers on both sides have choices: cut wasteful spending, reform entitlements, and restore sensible budgeting — or keep kicking the can and let interest costs explode. Washington’s current habit is to treat the budget like a credit card with no limit. Voters should demand better. If leaders won’t act, they should at least stop pretending the problem will solve itself.
