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Three things to know : NPR

NPR • August 20, 2026 • general

Key Points:

The U.S. federal debt has reached $40 trillion, with annual interest payments exceeding $1 trillion, making it the government's second-largest expense after Social Security.
The debt has grown due to consistent government spending exceeding tax revenues, driven by political decisions and automatic increases in costs like Social Security and Medicare as baby boomers retire.
Rising federal debt increases borrowing costs for Americans, as higher Treasury yields push up interest rates on mortgages, car loans, and credit cards.
The Treasury Department has attempted to manage bond yields through buy-back programs, but these measures are temporary and do not address the fundamental debt issues.
Addressing the debt will require Congressional action to raise taxes, cut spending, or both, yet fiscal discipline has waned in Washington despite warnings from financial markets and watchdog groups.

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