U.S. federal debt could breach $40.0 trillion this week, months earlier than
previously projected, the Washington Post reports. The overturning of Trump-era
tariffs has cost the Treasury billions in revenue, prompting accelerated
borrowing to fund government outlays. Six months ago the CBO forecast
fiscal-year debt at $39.4 trillion; Treasury data on Monday showed debt at $39.9
trillion and still rising. Faster accumulation could bring forward the deadline
to raise the statutory debt limit — set at $41.1 trillion last year — and budget
analysts say borrowing may hit that cap in early next year, forcing Congress to
suspend or raise the limit to avoid default risk.
