Treasurer Steven Johnson statement on National Debt reaching $40 trillion

Treasurer Steven Johnson statement on National Debt reaching $40 trillion

TOPEKA (August 20, 2026) Kansas State Treasurer Steven Johnson today issued the following statement on the announcement on Wednesday that the United States national debt has now reached $40 trillion. Johnson, who is a member of the National Debt Crisis Task Force of the State Financial Officers Foundation, has consistently warned state and federal lawmakers that the national debt is unsustainable and threatens the financial stability of the United States, the dollar as the world's reserve currency, and our nation s position of global leadership.

"The announcement that the national debt has now reached $40 trillion is both frightening and sobering. The national debt is now costing the U.S. Treasury more than $3 billion a day in service payments. Our ability to service the national debt is waning, a reality underscored by the fact that the annual interest payment now surpasses each of the annual budgets of the United States Military and Medicare. Without action, the cost of debt service will soon surpass the annual cost for Social Security. The deteriorating federal fiscal situation is unsustainable, irresponsible and dangerous, as well as a threat to our national security.

"This year the United States is scheduled to borrow more than $2 trillion to help pay for its debt obligations. Interest payments to investors who have purchased America's debt now make up about half of the annual debt, pushing the nation into a deeper -and unsustainable- financial hole. The yield on 30-year U.S. Treasuries hit its highest level in nearly two decades this week, meaning higher borrowing costs for consumers and businesses. The U.S. debt-to-GDP ratio is becoming increasingly unbalanced (currently at 122%) and lenders will attach a higher risk premium to lending, pushing up interest rates as a result.

"The national debt is a bipartisan problem and demands a bipartisan solution. I call upon the nation's leaders to demand a return to fiscal responsibility and to adopt policies that reduce our spiraling national debt."

About Treasurer Johnson

Steven Johnson was elected the state's 42nd state treasurer in 2022 and assumed office on January 9, 2023. Johnson currently serves on the board of directors for the National Association of State Treasurers (NAST) and as national Chair of the 529 Network. Johnson is committed to serving Kansas as both a reliable banker for state funds and a responsible fiduciary of the state's invested dollars.