US national debt surges past $39 trillion just weeks into war in Iran
[March 19, 2026]
By FATIMA HUSSEIN
WASHINGTON (AP) — The national debt surpassed a record $39 trillion on
Wednesday, a milestone that comes just weeks into the U.S.-Israeli war
in Iran.
The unprecedented figure highlights competing administration priorities,
from passing a massive tax law and boosting defense spending and
immigration enforcement to chipping away at the debt itself — the latter
of which Donald Trump promised to do as both a candidate and as
president.
The Government Accountability Office outlines some of the impact of
rising government debt on Americans — including higher borrowing costs
for things like mortgages and cars, lower wages from businesses having
less money available to invest, and more expensive goods and services.
Advocates for a balanced budget also warn that the long-term trend of
borrowing more and paying more in interest will force Americans to face
tougher fiscal tradeoffs ahead.
Michael Peterson, chair and CEO of the nonprofit Peter G. Peterson
Foundation, created to raise awareness of America’s long-term fiscal
challenges, said in a statement that “we must recognize this alarming
rate of growth and the significant financial burden we are putting on
the next generation.”
The trajectory of the rising costs is also a concern. The federal debt
has surged under both Republican and Democratic presidents, most
recently fueled by wars, large-scale pandemic spending and tax cuts.
The U.S. national debt hit $38 trillion five months ago — and $37
trillion two months before that.
“At the current growth rate, we will hit a staggering $40 trillion in
national debt before this fall’s elections,” Peterson said. “Borrowing
trillion after trillion at this rapid pace with no plan in place is the
definition of unsustainable.”
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Director of the White House National Economic Council Kevin Hassett
stands before a television interview of the White House, Friday,
March 6, 2026, in Washington. (AP Photo/Alex Brandon)
White House economic adviser Kevin Hassett estimated on Sunday that
the war in Iran had cost the U.S. more than $12 billion so far. It
is unclear when the war will end.
Kush Desai, a White House spokesman, pointed to a decline in the
federal deficit during Trump's first year back in office.
According to Treasury's Fiscal Data website, total government
spending in fiscal year 2025 was $7.01 trillion and total revenue
was $5.23 trillion, resulting in a deficit of $1.78 trillion, which
is a decrease of $41 billion from the previous fiscal year.
Desai said the decrease in the deficit is attributable to raising
individual tax revenue and a “government right-sizing push that has
reduced federal employment to its lowest level since 1966, and
aggressive crackdown on federal welfare fraud. As these and other
initiatives continue taking effect, America’s deficit and
debt-to-GDP ratios will continue trending in the right direction.”
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