The United States' gross national debt has crossed the $40 trillion mark for the first time, according to data from the US Treasury Department. The whopping debt highlights the growing pressure on government finances as borrowing costs rise and long-term spending commitments expand.Total public debt outstanding reached $40.05 trillion at the close of business Tuesday (Aug 18). The figure is higher than an earlier Congressional Budget Office forecast, which had projected that total borrowing would reach $39.4 trillion by the end of fiscal year 2026.Also read | <a href="https://www.wionews.com/world/trump-announces-crushing-economic-campaign-against-iran-threatens-allies-with-tremendous-penalties-1787186991774">Trump announces ‘crushing’ economic campaign against Iran, threatens allies with ‘tremendous’ penalties</a><h2>Why is US debt rising?</h2>The US government routinely borrows to cover the gap between its spending and revenue. But the scale of that borrowing has grown sharply in recent years.Long-term obligations linked to Social Security and healthcare are increasing, while higher interest rates have made servicing existing debt more expensive. Government spending, including costs linked to the war in the Middle East, and tax cuts have added to the borrowing requirement.Jessica Riedl, a budget and tax fellow at the Brookings Institution, said the US has been running deficits of roughly $2 trillion even during periods of peace and economic growth."Over the last few years, the United States has moved into roughly $2 trillion deficits, even during peace and prosperity," she told AFP.Riedl noted that deficits that once stood at around 3 per cent to 4 per cent of GDP are now closer to 6 per cent to 7 per cent, making financial markets increasingly nervous.Also read | <a href="https://www.wionews.com/world/someday-your-children-will-white-house-attacks-cnn-reporter-after-question-about-trump-aide-natalie-harp-1787018113542">'Someday, your children will...': White House attacks CNN reporter after question about Trump aide Natalie Har</a><h2>Higher interest costs add to the pressure</h2>The rise in debt comes as investors are already concerned about inflation, government spending, and the economic impact of the war in Iran.Long-term Treasury yields rose Tuesday to their highest level since 2007, increasing the cost of refinancing government debt. The Treasury moved to calm the long-term bond market early Wednesday, sending yields lower.Higher borrowing costs do not affect the government alone. If Treasury yields remain elevated, consumers and businesses could also face more expensive borrowing, potentially weighing on economic growth.<h2>Is $40 trillion a crisis?</h2>The $40 trillion milestone is significant, but it does not automatically mean the US is facing a debt crisis.Economists generally consider debt held by the public more meaningful when assessing the economic impact of government borrowing than gross national debt. Still, the milestone is a warning sign for financial markets."It has made markets more nervous," Riedl said, adding that such landmarks can prompt investors to take another look at the country's borrowing trajectory.Caleb Quakenbush of the Bipartisan Policy Center said US spending trends have not been addressed by Congress or successive administrations in a "meaningful or durable way."The US Treasury has previously set a goal of reducing the federal deficit to 3per cent of GDP, but the latest figures underline the scale of the challenge facing Washington.

America's debt has crossed a number once considered almost unimaginable. With borrowing costs rising and annual deficits still running into trillions, the US has now crossed the $40 trillion mark. But does that mean a debt crisis is coming?

The United States' gross national debt has crossed the $40 trillion mark for the first time, according to data from the US Treasury Department. The whopping debt highlights the growing pressure on government finances as borrowing costs rise and long-term spending commitments expand. Total public debt outstanding reached $40.05 trillion at the close of business Tuesday (Aug 18). The figure is higher than an earlier Congressional Budget Office forecast, which had projected that total borrowing would reach $39.4 trillion by the end of fiscal year 2026. Also read | Trump announces ‘crushing’ economic campaign against Iran, threatens allies with ‘tremendous’ penalties Why is US debt rising? The US government routinely borrows to cover the gap between its spending and revenue. But the scale of that borrowing has grown sharply in recent years. Long-term obligations linked to Social Security and healthcare are increasing, while higher interest rates have made servicing existing debt more expensive. Government spending, including costs linked to the war in the Middle East, and tax cuts have added to the borrowing requirement. Jessica Riedl, a budget and tax fellow at the Brookings Institution, said the US has been running deficits of roughly $2 trillion even during periods of peace and economic growth. "Over the last few years, the United States has moved into roughly $2 trillion deficits, even during peace and prosperity," she told AFP. Riedl noted that deficits that once stood at around 3 per cent to 4 per cent of GDP are now closer to 6 per cent to 7 per cent, making financial markets increasingly nervous. Also read | 'Someday, your children will...': White House attacks CNN reporter after question about Trump aide Natalie Har Higher interest costs add to the pressure The rise in debt comes as investors are already concerned about inflation, government spending, and the economic impact of the war in Iran. Long-term Treasury yields rose Tuesday to their highest level since 2007, increasing the cost of refinancing government debt. The Treasury moved to calm the long-term bond market early Wednesday, sending yields lower. Higher borrowing costs do not affect the government alone. If Treasury yields remain elevated, consumers and businesses could also face more expensive borrowing, potentially weighing on economic growth. Is $40 trillion a crisis? The $40 trillion milestone is significant, but it does not automatically mean the US is facing a debt crisis. Economists generally consider debt held by the public more meaningful when assessing the economic impact of government borrowing than gross national debt. Still, the milestone is a warning sign for financial markets. "It has made markets more nervous," Riedl said, adding that such landmarks can prompt investors to take another look at the country's borrowing trajectory. Caleb Quakenbush of the Bipartisan Policy Center said US spending trends have not been addressed by Congress or successive administrations in a "meaningful or durable way." The US Treasury has previously set a goal of reducing the federal deficit to 3per cent of GDP, but the latest figures underline the scale of the challenge facing Washington.

America's debt has crossed a number once considered almost unimaginable. With borrowing costs rising and annual deficits still running into trillions, the US has now crossed the $40 trillion mark. But does that mean a debt crisis is coming?

America's debt hits a staggering $40 trillion for the first time. Is the US heading for a crisis?

An Iranian lawmaker mocked US President Donald Trump on Sunday (Aug 16) over his threat to take control of the Strait of Hormuz, telling the US president to worry about his own safety instead. Ebrahim Azizi, chairman of the Iranian Parliament's National Security and Foreign Policy Committee said that Trump is bluffing everyone by making false claims on the Strait of Hormuz. He reminded that Trump should take care of his own safety as it was he who had to hide away in a catering truck during his departure from Turkey last month after reports of Iranian assassination.&nbsp;Also Read: <a href="https://www.wionews.com/videos/iraqi-militias-houthis-emerge-as-key-iranian-allies-as-iran-rebuilds-axis-of-resistance-1786723256430">Iraqi militias &amp; Houthis emerge as key Iranian allies as Iran rebuilds axis of resistance</a>&nbsp;US President Donald Trump’s secret departure from Turkey in a catering cart became a major news last week. After the NATO summit in Turkey on July 8, Trump was seen boarding the Air Force One but then he swapped the planes amid threat from Iran as per Israeli intelligence report. He confirmed that he was shifted in a catering cart in an unmarked military aircraft. The Washington Post first reported about the development. The original Air Force One continued its journey with journalists and some White House staff on board. It reportedly acted as a decoy to make it harder to identify Trump’s actual aircraft. Also Read: <a href="https://www.wionews.com/world/iran-says-hormuz-passage-deal-reached-with-oman-reopening-tied-to-us-lifting-blockade-1786804702036">Iran says Hormuz passage deal reached with Oman, reopening tied to US lifting blockade</a>&nbsp;Ebrahim Azizi, chairman of the Iranian Parliament's National Security and Foreign Policy Committee, made the remarks in a social media post a day after Trump said the US Navy was maintaining a full blockade of the Strait of Hormuz and suggested that Washington could claim the strait as US territory after defeating Iran. “The US President ought to worry about his own security rather than his endless bluffing regarding the Strait of Hormuz; before he ends up hiding in a food truck,” Ebrahim Azizi wrote on X.

Iranian lawmaker Ebrahim Azizi mocked Donald Trump over his threat to take control of the Strait of Hormuz, telling the US president to focus on his own security. Azizi referenced reports that Trump was moved in a catering truck during his departure from Turkey amid an alleged Iranian threat.

An Iranian lawmaker mocked US President Donald Trump on Sunday (Aug 16) over his threat to take control of the Strait of Hormuz, telling the US president to worry about his own safety instead. Ebrahim Azizi, chairman of the Iranian Parliament's National Security and Foreign Policy Committee said that Trump is bluffing everyone by making false claims on the Strait of Hormuz. He reminded that Trump should take care of his own safety as it was he who had to hide away in a catering truck during his departure from Turkey last month after reports of Iranian assassination. Also Read: Iraqi militias & Houthis emerge as key Iranian allies as Iran rebuilds axis of resistance US President Donald Trump’s secret departure from Turkey in a catering cart became a major news last week. After the NATO summit in Turkey on July 8, Trump was seen boarding the Air Force One but then he swapped the planes amid threat from Iran as per Israeli intelligence report. He confirmed that he was shifted in a catering cart in an unmarked military aircraft. The Washington Post first reported about the development. The original Air Force One continued its journey with journalists and some White House staff on board. It reportedly acted as a decoy to make it harder to identify Trump’s actual aircraft. Also Read: Iran says Hormuz passage deal reached with Oman, reopening tied to US lifting blockade Ebrahim Azizi, chairman of the Iranian Parliament's National Security and Foreign Policy Committee, made the remarks in a social media post a day after Trump said the US Navy was maintaining a full blockade of the Strait of Hormuz and suggested that Washington could claim the strait as US territory after defeating Iran. “The US President ought to worry about his own security rather than his endless bluffing regarding the Strait of Hormuz; before he ends up hiding in a food truck,” Ebrahim Azizi wrote on X.

Iranian lawmaker Ebrahim Azizi mocked Donald Trump over his threat to take control of the Strait of Hormuz, telling the US president to focus on his own security. Azizi referenced reports that Trump was moved in a catering truck during his departure from Turkey amid an alleged Iranian threat.

'Worry about his own security': Iran official's warning to Trump amid claims on Hormuz

The United States Navy is widely regarded as one of the world's most powerful and technologically advanced maritime forces. In December, US President Donald Trump announced plans for a new class of warships, called the "Trump Class", describing them as "some of the most lethal surface warfare ships" and the largest battleships in US history. The proposed fleet was projected to cost around $275 billion and was intended to mark the country's biggest battleship programme since World War II.&nbsp;Nearly nine months later, the ambitious plan has run into major obstacles. A report by the US Congressional Budget Office (CBO) raised concerns over the project's soaring costs, construction challenges and overall feasibility. The report questioned whether American shipyards have the capacity to build such massive nuclear-powered vessels.&nbsp;According to the US Navy's 2027 Shipbuilding Plan, released in May, the Navy aims to acquire 15 battleships, each weighing around 35,000 tonnes, between 2028 and 2056. The CBO estimates the first ship would cost about $23.4 billion, while each of the remaining vessels would cost around $18 billion, significantly higher than earlier estimates based on conventional propulsion. The revised design now calls for nuclear power, driving up the projected cost.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/rahul-gandhi-opens-up-on-jharkhand-student-protest-for-first-time-says-every-govt-must-1786030596513">Watch: Rahul Gandhi opens up on Jharkhand student protest for first time, says 'every govt must...'</a>&nbsp;The report also warned that the programme would place enormous pressure on the US shipbuilding industry. It said the Navy's plan would require shipbuilders to more than double production of large surface combatants by 2035, creating a major industrial challenge.&nbsp;The CBO noted that the industry is already struggling with delays and budget overruns. Last year, then US Navy Secretary John Phelan told Congress that the Navy's best-performing shipbuilding programme was six months behind schedule and 57 per cent over budget. It also highlighted that the two main builders of US surface combatants continue to face production issues, with Arleigh Burke class destroyers being delivered about five years late on average. Neither of the shipyards currently has the capability to build nuclear-powered surface warships.&nbsp;The report further said that every new class of warship comes with a steep learning curve, and first-of-their-kind vessels typically take longer to build and cost more than initially expected.&nbsp;Even if these industrial challenges are overcome, defence analysts continue to question whether investing hundreds of billions of dollars in giant battleships is the right strategy. They argue that modern conflicts in West Asia and the Russia-Ukraine war have shown that low-cost drones are increasingly shaping naval warfare.

Donald Trump's proposed $275 billion "Trump Class" battleship programme has come under scrutiny after a US Congressional Budget Office report raised concerns over rising costs, shipbuilding capacity and the project's overall feasibility.

The United States Navy is widely regarded as one of the world's most powerful and technologically advanced maritime forces. In December, US President Donald Trump announced plans for a new class of warships, called the "Trump Class", describing them as "some of the most lethal surface warfare ships" and the largest battleships in US history. The proposed fleet was projected to cost around $275 billion and was intended to mark the country's biggest battleship programme since World War II. Nearly nine months later, the ambitious plan has run into major obstacles. A report by the US Congressional Budget Office (CBO) raised concerns over the project's soaring costs, construction challenges and overall feasibility. The report questioned whether American shipyards have the capacity to build such massive nuclear-powered vessels. According to the US Navy's 2027 Shipbuilding Plan, released in May, the Navy aims to acquire 15 battleships, each weighing around 35,000 tonnes, between 2028 and 2056. The CBO estimates the first ship would cost about $23.4 billion, while each of the remaining vessels would cost around $18 billion, significantly higher than earlier estimates based on conventional propulsion. The revised design now calls for nuclear power, driving up the projected cost. Also Read: Watch: Rahul Gandhi opens up on Jharkhand student protest for first time, says 'every govt must...' The report also warned that the programme would place enormous pressure on the US shipbuilding industry. It said the Navy's plan would require shipbuilders to more than double production of large surface combatants by 2035, creating a major industrial challenge. The CBO noted that the industry is already struggling with delays and budget overruns. Last year, then US Navy Secretary John Phelan told Congress that the Navy's best-performing shipbuilding programme was six months behind schedule and 57 per cent over budget. It also highlighted that the two main builders of US surface combatants continue to face production issues, with Arleigh Burke class destroyers being delivered about five years late on average. Neither of the shipyards currently has the capability to build nuclear-powered surface warships. The report further said that every new class of warship comes with a steep learning curve, and first-of-their-kind vessels typically take longer to build and cost more than initially expected. Even if these industrial challenges are overcome, defence analysts continue to question whether investing hundreds of billions of dollars in giant battleships is the right strategy. They argue that modern conflicts in West Asia and the Russia-Ukraine war have shown that low-cost drones are increasingly shaping naval warfare.

Donald Trump's proposed $275 billion "Trump Class" battleship programme has come under scrutiny after a US Congressional Budget Office report raised concerns over rising costs, shipbuilding capacity and the project's overall feasibility.

Trump's battleship fantasy gets a $275 billion reality check

US President Donald Trump has rejected claims that American military stockpiles were heavily depleted during the conflict with Iran. He said the United States has "massive amounts" of munitions and warned that those responsible for leaking information about military inventories would face prosecution and lengthy prison terms.&nbsp;Trump's remarks came after CNN, citing multiple sources, reported that US military commanders had raised concerns over critically low stockpiles of some munitions, especially air defence interceptors, following the Iran conflict.&nbsp;"The US has massive amounts of munitions, especially of certain types. Additionally, large amounts are being manufactured and shipped to the U.S. as needed. Defence companies are building the largest number of plants and factories in our country's history. The 'leakers' of these treasonous statements are being hunted down. Long-term jail sentences will be sought!" Trump said in a post on Truth Social.<h2>US missile defence stockpiles under pressure</h2>The report, citing people familiar with the matter, said the US military had used a significant share of its interceptors for key missile defence systems since the war began. Senior commanders reportedly warned that some Pentagon stockpiles had fallen to concerning levels.&nbsp;The US military has depleted nearly 80 per cent of its Terminal High Altitude Area Defence (THAAD) missile inventory compared with pre-war levels. It has also used around half of its Patriot interceptors during the conflict, according to two sources familiar with the latest inventory assessments.&nbsp;The extent of the THAAD depletion had not been disclosed publicly before. The Centre for Strategic and International Studies (CSIS) estimated that the US had around 452 THAAD missiles and about 2,200 Patriot interceptors of the two most modern variants before the Iran war began.&nbsp;Also Read:<a href="https://www.wionews.com/world/carney-mocks-trump-over-teleprompter-glitch-us-president-calls-canadian-leadership-nasty-1785996010337"> Carney mocks Trump over teleprompter glitch, US president calls Canadian leadership 'nasty'</a><h2>Gulf allies fear reduced US air defence support</h2>CNN also reported that concerns over air defence shortages have spread to US allies in the Gulf. Several countries fear that reduced availability of American defence systems could affect their ability to respond to possible Iranian missile and drone attacks.&nbsp;Officials said several Gulf nations rely on US-supplied air defence systems and have expressed concern that lower inventories could weaken their ability to intercept threats, particularly if they become targets after any further US escalation.&nbsp;Trump had earlier dismissed reports that military stockpiles had reached dangerously low levels and directly rejected claims that interceptor shortages were limiting American military strategy during the conflict with Iran.&nbsp;Speaking to The Wall Street Journal, Trump denied that shrinking munitions stockpiles posed a challenge to US defence capabilities, saying, "We have far more munitions than anyone in the world, and far more than we need."&nbsp;Trump had also called off "the biggest attack since World War II" on Iran, citing possible negotiations over the Strait of Hormuz.&nbsp;However, officials said low stockpile levels influenced Trump's decisions on whether to launch additional large-scale strikes against Iran.

Trump denied claims that the Iran conflict depleted US military stockpiles, saying the country has more than enough munitions and threatening legal action against leakers.

US President Donald Trump has rejected claims that American military stockpiles were heavily depleted during the conflict with Iran. He said the United States has "massive amounts" of munitions and warned that those responsible for leaking information about military inventories would face prosecution and lengthy prison terms. Trump's remarks came after CNN, citing multiple sources, reported that US military commanders had raised concerns over critically low stockpiles of some munitions, especially air defence interceptors, following the Iran conflict. "The US has massive amounts of munitions, especially of certain types. Additionally, large amounts are being manufactured and shipped to the U.S. as needed. Defence companies are building the largest number of plants and factories in our country's history. The 'leakers' of these treasonous statements are being hunted down. Long-term jail sentences will be sought!" Trump said in a post on Truth Social. US missile defence stockpiles under pressure The report, citing people familiar with the matter, said the US military had used a significant share of its interceptors for key missile defence systems since the war began. Senior commanders reportedly warned that some Pentagon stockpiles had fallen to concerning levels. The US military has depleted nearly 80 per cent of its Terminal High Altitude Area Defence (THAAD) missile inventory compared with pre-war levels. It has also used around half of its Patriot interceptors during the conflict, according to two sources familiar with the latest inventory assessments. The extent of the THAAD depletion had not been disclosed publicly before. The Centre for Strategic and International Studies (CSIS) estimated that the US had around 452 THAAD missiles and about 2,200 Patriot interceptors of the two most modern variants before the Iran war began. Also Read: Carney mocks Trump over teleprompter glitch, US president calls Canadian leadership 'nasty' Gulf allies fear reduced US air defence support CNN also reported that concerns over air defence shortages have spread to US allies in the Gulf. Several countries fear that reduced availability of American defence systems could affect their ability to respond to possible Iranian missile and drone attacks. Officials said several Gulf nations rely on US-supplied air defence systems and have expressed concern that lower inventories could weaken their ability to intercept threats, particularly if they become targets after any further US escalation. Trump had earlier dismissed reports that military stockpiles had reached dangerously low levels and directly rejected claims that interceptor shortages were limiting American military strategy during the conflict with Iran. Speaking to The Wall Street Journal, Trump denied that shrinking munitions stockpiles posed a challenge to US defence capabilities, saying, "We have far more munitions than anyone in the world, and far more than we need." Trump had also called off "the biggest attack since World War II" on Iran, citing possible negotiations over the Strait of Hormuz. However, officials said low stockpile levels influenced Trump's decisions on whether to launch additional large-scale strikes against Iran.

Trump denied claims that the Iran conflict depleted US military stockpiles, saying the country has more than enough munitions and threatening legal action against leakers.

Trump denies US missile stockpile shortage, warns leakers of prosecution and jail

The Trump administration has refunded around $100 billion in tariffs collected from importers after the US Supreme Court ruled earlier this year that President Donald Trump's tariffs were illegal and that he had exceeded his authority in imposing a broad set of trade duties under emergency powers.According to AFP, Court filings submitted on Tuesday (Aug 4) show the refunds account for roughly 60 per cent of the approximately $166 billion collected under tariffs imposed using the International Emergency Economic Powers Act (IEEPA). The refunded money has been returned to importers that had paid the duties.Also read | <a href="https://www.wionews.com/world/bangladesh-says-sheikh-hasina-s-india-media-appearance-hurt-ties-calls-it-an-affront-to-sovereignty-1785977377689">'Affront to our sovereignty': Bangladesh slams India over Sheikh Hasina's Delhi press conference</a><h2>Supreme Court dealt major blow to Trump's tariff strategy</h2>After returning to the White House, Trump relied on the IEEPA to impose sweeping tariffs on multiple US trading partners, arguing they were necessary to address national emergencies.However, the Supreme Court ruled in February that the president had overstepped the authority granted under the law, significantly limiting his ability to use emergency powers to impose tariffs.The decision forced the administration to begin refunding duties collected under the invalidated measures.The ruling did not affect Trump's sector-specific tariffs, which were imposed under different legal authorities and remain in force.Also read | <a href="https://www.wionews.com/world/us-says-strait-of-hormuz-remains-open-despite-unwarranted-iranian-aggression-as-report-suggest-deal-to-reopen-vital-waterway-close-1785897369267">US says Strait of Hormuz remains open despite ‘unwarranted Iranian aggression,’ as reports suggest deal to reopen vital waterway close</a><h2>Over $128 billion in refunds being processed</h2>According to Tuesday's court filing, a US Customs and Border Protection official said that, as of July 31, the agency had accepted about $128.68 billion in potential and certified refund claims for processing.Of that amount, roughly $100 billion had already been processed and forwarded to the US Treasury Department for payment to eligible importers. The remaining certified claims are still being processed.<h2>Fresh tariffs face new legal scrutiny</h2>Since the Supreme Court ruling, the Trump administration has sought to restore tariffs through alternative legal mechanisms, announcing new duties on dozens of trading partners.Those measures have also triggered fresh legal challenges, setting the stage for another round of court battles over the scope of presidential authority in US trade policy.

The Trump administration has refunded about $100 billion in tariffs after the US Supreme Court ruled that President Donald Trump exceeded his authority by imposing broad trade duties under emergency powers. More refund claims worth over $128 billion are still being processed.

The Trump administration has refunded around $100 billion in tariffs collected from importers after the US Supreme Court ruled earlier this year that President Donald Trump's tariffs were illegal and that he had exceeded his authority in imposing a broad set of trade duties under emergency powers. According to AFP, Court filings submitted on Tuesday (Aug 4) show the refunds account for roughly 60 per cent of the approximately $166 billion collected under tariffs imposed using the International Emergency Economic Powers Act (IEEPA). The refunded money has been returned to importers that had paid the duties. Also read | 'Affront to our sovereignty': Bangladesh slams India over Sheikh Hasina's Delhi press conference Supreme Court dealt major blow to Trump's tariff strategy After returning to the White House, Trump relied on the IEEPA to impose sweeping tariffs on multiple US trading partners, arguing they were necessary to address national emergencies. However, the Supreme Court ruled in February that the president had overstepped the authority granted under the law, significantly limiting his ability to use emergency powers to impose tariffs. The decision forced the administration to begin refunding duties collected under the invalidated measures. The ruling did not affect Trump's sector-specific tariffs, which were imposed under different legal authorities and remain in force. Also read | US says Strait of Hormuz remains open despite ‘unwarranted Iranian aggression,’ as reports suggest deal to reopen vital waterway close Over $128 billion in refunds being processed According to Tuesday's court filing, a US Customs and Border Protection official said that, as of July 31, the agency had accepted about $128.68 billion in potential and certified refund claims for processing. Of that amount, roughly $100 billion had already been processed and forwarded to the US Treasury Department for payment to eligible importers. The remaining certified claims are still being processed. Fresh tariffs face new legal scrutiny Since the Supreme Court ruling, the Trump administration has sought to restore tariffs through alternative legal mechanisms, announcing new duties on dozens of trading partners. Those measures have also triggered fresh legal challenges, setting the stage for another round of court battles over the scope of presidential authority in US trade policy.

The Trump administration has refunded about $100 billion in tariffs after the US Supreme Court ruled that President Donald Trump exceeded his authority by imposing broad trade duties under emergency powers. More refund claims worth over $128 billion are still being processed.

Trump administration refunds $100 billion in tariffs after Supreme Court ruling