Washington, D.C. — The U.S. national debt has crossed $40 trillion for the first time, prompting Treasury Secretary Scott Bessent to argue that stronger economic growth can make the burden more manageable without focusing solely on the headline figure.
“There’s nothing magic about the $40 trillion number, and we can grow our way out of that,” Bessent told CNBC on Thursday. He argued that debt and deficits are better evaluated relative to the size of the economy rather than through the total alone.
Treasury data show roughly $32.3 trillion of the debt is held by the public, while about $7.8 trillion is owed within the federal government, including obligations to programs such as Social Security.
Bessent blamed much of the fiscal deterioration on the Biden administration and said tariff revenue should rebound after the Supreme Court required refunds tied to some Trump-era emergency tariffs.
However, the debt increase spans both Democratic and Republican administrations. Reuters reported that federal debt has roughly doubled since 2017, driven by persistent deficits, pandemic spending, tax cuts and rising costs for entitlement programs. Interest payments have also climbed above $1 trillion annually, increasing pressure on future federal budgets.
Economic growth can reduce the debt-to-GDP ratio, but sustained deficits mean growth alone may not prevent the total debt from continuing to rise.
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