Fastest Four: $40 Trillion in Debt

The U.S. national debt just hit $40 trillion — here's what that means for your money.

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The debt crossed $40 trillion on August 18, 2026 — up from $30 trillion just four and a half years earlier, and $20 trillion less than nine years ago. LPL data shows the government hasn't run a budget surplus in 25 years. The number economists watch most closely is debt-to-GDP, which is sitting at 123%, near an all-time high. History shows stocks and bonds have generally held up through periods of rising debt — recessions and bear markets have typically been triggered by something else, like the 2008 financial crisis or the COVID shutdown, not the debt level itself. The bigger risk is that neither party is moving to cut spending, which makes tax increases the most likely lever left to pull.

If you're wondering how a rising national debt could affect your taxes, your investments, or your retirement plan, this is worth a conversation before you make any big financial moves.