Needless to say most Americans are not aware of the following data, don’t actually care and have no idea of the crisis we are possibly facing living on debt. We are headed to a very precarious place.
As of late August 2026
Total national debt – Over $40 trillion
Debt held by the public – About $32.3 trillion
Intragovernmental debt – About $7.8 trillion
Projected FY 2026 deficit – About $1.9 trillion
Deficit as % of GDP – 5.8%
Projected net interest cost, FY 2026 – About $1.0 trillion
Debt held by public as % of GDP – About 101%
The Treasury-reported gross national debt recently crossed $40 trillion for the first time. About $32.3 trillion is debt held by the public, while roughly $7.8 trillion is held by government accounts such as the Social Security and Medicare trust funds.
The deficit remains extremely large
For fiscal year 2026, the Congressional Budget Office’s February baseline projected:
$7.4 trillion in federal spending
$5.6 trillion in revenue
A $1.9 trillion deficit
That means the government is projected to borrow roughly 26 cents of every dollar it spends this fiscal year. The deficit is projected at 5.8% of GDP, compared with a 50-year historical average of about 3.8%.
Interest is now one of the government’s biggest expenses
CBO projects net interest costs of about $1 trillion in FY 2026.
That is especially significant because interest payments provide no direct government services or benefits.
CBO projects net interest costs will rise from about $1 trillion in 2026 to $2.1 trillion by 2036 under its baseline.
Instead many Americans have this point of view on taxes which is irresponsible if not ignorant. The USA can’t afford any tax cuts – or added unfunded spending.
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