Donald Trump’s second term as president has seen the United States’ national debt surpass $40 trillion, despite his campaign promises to reduce federal spending and control deficits. In the 19 months since his re-election, federal expenditures have continued to rise, and the ongoing six-month conflict with Iran has added to the financial strain. Meanwhile, the cost of servicing the debt has increased as yields on certain U.S. government bonds have reached levels not seen in nearly 20 years.
Fiscal experts warn that the growing debt poses a serious challenge for both Congress and future administrations, potentially forcing difficult decisions such as tax increases or cuts to entitlement programs like Social Security. Maya MacGuineas, president of the centrist Committee for a Responsible Federal Budget, stated that there is no evidence of fiscal success during Trump’s tenure. She acknowledged that while the debt crisis predates Trump, legislative inaction combined with the president’s policies has contributed significantly to the current situation.
The debt milestone coincides with the lead-up to the November midterm elections, which will determine if Republicans maintain control of Congress. Although economic concerns related to the debt—such as high mortgage rates and inflation outpacing wage growth—may not be at the forefront of voters’ minds, these issues have tangible effects on the broader population.
During Trump’s first term, tax cuts added approximately $8.4 trillion to the national debt, according to the Committee for a Responsible Federal Budget. Additional tax and immigration legislation in his second term has contributed roughly $4.7 trillion more, based on estimates from the Congressional Budget Office. Trump’s administration argues that efforts were made to reduce government waste by eliminating inefficient programs and cutting federal employment. While the annual deficit did see a modest decrease in 2025, overall debt levels continued to rise.
Responsibility for the expanding debt is shared across political parties. Tax cuts under Republican presidents Ronald Reagan and George W. Bush, along with the expenses of wars during Bush’s administration, helped widen deficits. Democratic presidents Barack Obama and Joe Biden increased spending through stimulus efforts following the 2008 financial crisis and the COVID-19 pandemic. Democrats achieved some fiscal progress during Bill Clinton’s presidency, marked by economic growth and bipartisan reforms that led to budget surpluses.
Long-term demographic trends have also placed pressure on federal finances. The retirement of the baby boomer generation has strained Social Security and Medicare trust funds, with payroll tax revenues insufficient to cover projected future benefits. While past Republican leaders advocated for entitlement reforms, Trump has diverged from this approach by introducing new government-funded programs, including investment accounts for newborns.
The Trump administration has also shifted the U.S. tax structure by raising tariffs and lowering corporate tax rates, increasing reliance on revenue from individual taxpayers rather than businesses and investors. This shift occurs amid global economic changes and a declining workforce, further complicating efforts to stabilize government revenue streams and reduce the national debt.