Trump’s America faces a ‘doom loop’ as it falls in a $56 trillion hole

August 20, 2026 — 11:45am

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Total US public debt surpassed $US40 trillion ($56 trillion) for the first time, and has now surged by a third in less than five years, as US lawmakers continue to shrug off calls to contend with historically wide fiscal deficits.

Public debt outstanding stood at $US40.05 trillion as of the close of business on Tuesday (Washington time), a Treasury Department release showed.

The news came hours after Treasury Secretary Scott Bessent made a fresh attempt to rein in long-term borrowing costs from multi-year highs – a notable component of the growth in debt. The Treasury said it’s ramping up a buyback program for longer-dated securities, in an announcement that sent yields lower.

The crossing of the $US30 trillion mark only dates back to January 2022, illustrating the rapid growth in federal borrowing needs. And there’s no end in sight.

Republicans have long opposed revenue-raising tax increases, while both parties have been loath to sign on to politically toxic cuts to healthcare and retirement benefits for seniors. Many observers anticipate Congress and the administration of the day will only act if forced by a financial-market disruption.

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That’s not for lack of talk about the issue in Washington. Bessent, for one, said a key reason he got involved in politics was to help tackle deficits running at a pace unprecedented for times outside of major wars, pandemics or depressed job markets.

Yet economists, the Congressional Budget Office and Wall Street all see little or no progress........

© The Age