U.S. debt held by public tops 100% of GDP for first time since 1946

Federal debt held by the public reached $32.2 trillion at the end of fiscal 2026, equivalent to 100.03% of gross domestic product. This marks the first time publicly held debt has exceeded the size of the U.S. Economy since 1946, when the ratio peaked at approximately 106% following World War II.

The Treasury Department’s September Monthly Treasury Statement shows the government spent approximately $7.4 trillion in fiscal 2026 while collecting $5.4 trillion, resulting in a $1.99 trillion deficit. Net interest payments on the debt rose to $1.052 trillion in fiscal 2026, up from $970 billion in 2025, consuming approximately 19.5% of federal revenue.

The Congressional Budget Office projects publicly held debt will reach 120% of GDP by 2036. Rising interest costs and the need to refinance lower-yield securities at higher rates may increase borrowing expenses for households and businesses, potentially lifting mortgage rates and corporate borrowing costs.

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