Potential reductions in capital gains taxes and historic highs in the stock market were analyzed alongside a pullback in July retail sales and moderating inflation during a recent segment of The Big Money Show, which also addressed the rapid expansion of the federal debt.<\/p>\n
With the U.S. national debt<\/a> swiftly nearing $40 trillion, roughly 25% of the total cumulative borrowing has accumulated during the presidency of Donald Trump.<\/p>\n Federal outlays have expanded substantially as demographic shifts increase the number of aging Americans, driving up enrollment in Medicare and Social Security<\/a> and expanding federal budget deficits.<\/p>\n That budgetary strain has been intensified by higher interest rates combined with a larger debt load, elevating annual debt servicing costs past $1 trillion.<\/p>\n At more than $1 trillion annually, federal net interest payments now represent one of the fastest-growing components of the federal budget, rivaling annual expenditures on national defense and placing sustained pressure on annual appropriations.<\/p>\n Although leaders from both political parties share responsibility for the long-term expansion of federal debt, Treasury Department<\/a> records indicate that the gross national debt<\/a> has increased by over $11.5 trillion across President Donald Trump’s first term and the current portion of his second term.<\/p>\n In a statement to FOX Business referencing Trump’s predecessor, White House spokesman Kush Desai said: “Cleaning up Joe Biden’s reckless fiscal mismanagement has been a top priority for the Trump administration, from slashing waste, fraud, and abuse in government spending to accelerating economic growth and getting America’s debt-to-GDP ratio back on the right track.”<\/p>\n US NATIONAL DEBT SURPASSES SIZE OF THE ECONOMY FOR FIRST TIME SINCE WORLD WAR II<\/p>\n The broader national debt figure tracked by the Treasury Department and the nonpartisan Congressional Budget Office<\/a> is the gross national debt, which is currently nearing $40 trillion.<\/p>\n That comprehensive figure incorporates all federal liabilities, including internal holdings within accounts like the Social Security trust funds. Excluding those intragovernmental obligations leaves debt held by the public, a distinct measurement that presently exceeds $32 trillion.<\/p>\n While gross national debt reflects the total financial commitments of the federal government, debt held by the public measures treasury securities traded in open markets and held by private investors, state governments, and foreign entities, serving as a key benchmark for financial market stability.<\/p>\n At the start of Trump’s first presidency on Jan. 20, 2017, the gross national debt stood at $19.9 trillion. Fiscal expansions during that term\u2014such as the Tax Cuts and Jobs Act alongside extensive emergency spending for COVID-19 relief\u2014contributed to the rising balance.<\/p>\n Highlighting the unprecedented nature of the pandemic during Trump’s initial term, a White House official argued that the crisis drove a major share of debt growth at the time. The official added that Biden “then recklessly spent trillions on COVID stimulus spending” and pointed to how “Obama economists like Larry Summers correctly warned would only ratchet up inflation, which caused interest rates to rise and just worsen the government\u2019s borrowing costs.”<\/p>\n President Donald Trump’s first term and the opening portion of his second term have seen the national debt grow by more than $11.5 trillion to date. ( Yuri Gripas\/Abaca\/Bloomberg via Getty Images)<\/p>\n FEDERAL BUDGET DEFICIT ON TRACK TO SURPASS $2T THIS FISCAL YEAR AS SPENDING OUTPACES REVENUE<\/p>\n The highest single-year federal budget deficit occurred in fiscal year 2020\u2014the final full fiscal year of Trump’s initial administration\u2014when expenditures exceeded revenues by more than $3.1 trillion.<\/p>\n Multiple bipartisan relief bills were signed into law during 2020 by the president and Congress to support individuals, businesses, and state and local governments facing economic fallout from the pandemic.<\/p>\n By the conclusion of Trump’s first administration on Jan. 20, 2021, the gross debt had climbed by more than $7.8 trillion to reach over $27.7 trillion. During the subsequent Biden presidency, the debt increased by over $8.4 trillion over four years, driven by continued pandemic spending and the passage of the American Rescue Plan Act under Democratic majorities.<\/p>\n SOCIAL SECURITY’S MAIN TRUST FUND FACES DEPLETION IN 2032, TRIGGERING BENEFIT CUTS<\/p>\n Treasury records confirm that when Trump began his second term, total gross national debt stood at $36.2 trillion as of Jan. 21, 2025, the day following his second inauguration.<\/p>\n By Aug. 14, 2026, Treasury figures showed the gross national debt had advanced to over $39.9 trillion, marking an expansion of more than $3.7 trillion in Trump’s second term. That rise reflects accelerated statutory entitlement outlays, elevated borrowing costs, tax cut provisions in the One Big Beautiful Bill Act<\/a>, and tariff refund disbursements.<\/p>\n GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/p>\n With gross national debt standing at more than $39.9 trillion as of Aug. 14, 2026, public debt obligations now top $32 trillion, elevated by compounding interest costs above $1 trillion annually alongside mandatory outlays for entitlement programs.<\/p>\n