AAP Finance

US debt surges past $39 trillion, weeks into Iran war

Mar 19, 2026

K-Shaped Economy-Explainer — An unprecedented US national debt highlights competing priorities for the Trump administration. -AP

The US national debt has surpassed a record $US39 trillion ($A55 trillion), a milestone that comes just weeks into the US-Israeli war in Iran.

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The unprecedented figure revealed on Wednesday highlights competing administration priorities, from passing a massive tax law and boosting defence 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 trade-offs ahead.

The trajectory of the rising costs is also a concern. The federal debt has surged under both Republican and Democratic presidents, most recently fuelled by wars, large-scale pandemic spending and tax cuts.

The US national debt hit $US38 trillion ($A54 trillion) five months ago — and $US37 trillion ($A52 trillion) two months before that.

White House economic adviser Kevin Hassett on Sunday estimated the war in Iran had cost the US more than $US12 billion ($A17 billion) so far. It is unclear when the war will end.

Representatives from the White House and Treasury Department did not immediately respond to an Associated Press request for comment on the debt milestone Wednesday.