Self-proclaimed ‘King of Debt’ Trump now presides over a record $40T US debt tab — protect your retirement from Washington’s borrowing binge

Treasury data showed total public debt outstanding reached $40.047 trillion on Aug. 18, including $32.266 trillion held by the public and $7.782 trillion in government accounts, Reuters reported.

That is double the $19.95 trillion owed when Trump first entered the White House in January 2017.

However, Trump did not create the entire tab. Roughly one-third of the increase came from pandemic borrowing under Trump and former President Joe Biden. Long-running budget imbalances and policy choices made by both administrations account for the remainder.

Debt rose by $7.8 trillion during Trump’s first term, including more than $4 trillion during the pandemic. It increased by $8.4 trillion under Biden and has grown another $3.8 trillion since Trump returned to office in January 2025.

Regardless of which party occupies the White House, the bill eventually rests on Americans’ tables.

America’s $40 trillion tab

Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, warned that the consequences will ultimately reach consumers.

“Forty trillion dollars of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another,” she said in a statement.

Servicing the national debt already consumes money that could otherwise fund government programs, reduce taxes or provide room to respond to crises (financial or otherwise).

The federal government spent approximately $1.1 trillion on interest during the first 10 months of fiscal 2026, according to Reuters. Interest surpassed Medicare to become the government’s second-largest expense, behind only Social Security.

The Congressional Budget Office projects that annual net interest costs will nearly double from $1 trillion in 2026 to $2.1 trillion in 2036. Debt held by the public is expected to climb from 101% to 120% of gross domestic product over the same period.

The effects of that tend to escape Washington’s ledgers.

When investors become more reluctant to purchase government debt, they may demand higher yields. Long-term Treasury yields help influence mortgage, auto and business borrowing costs, meaning Washington’s borrowing can make financing more expensive throughout the economy.

The 30-year Treasury yield recently climbed to approximately 5.34%, its highest level since 2007, amid concerns about America’s fiscal trajectory and inflation, Reuters reported.

While you cannot control Washington’s borrowing, you can prepare your retirement savings for inflation, higher rates and market volatility.

Add an inflation hedge to your retirement portfolio

Persistent government deficits do not automatically cause runaway inflation or a financial crisis. However, retirement savers may still want assets that do not respond to economic conditions in exactly the same way as stocks and bonds.

Gold has traditionally been used as a store of value during periods of inflation, currency weakness and economic uncertainty. It does not generate dividends or interest, making it better suited to a diversified portfolio than an all-or-nothing bet. Here’s how:

Consider a hypothetical $100,000 portfolio. It’s holding $90,000 in stocks and $10,000 in gold. If stocks fell 20% while gold rose 10%, the stock portion would contract to $72,000 while gold would expand to $11,000.

The portfolio would finish at $83,000, a 17% loss, rather than the 20% loss an all-stock portfolio would suffer. That $3,000 cushion would not eliminate the downturn, but it reduces the overall damage and leaves more value available to participate when things recover.

If you’re interested in putting gold to work in your retirement portfolio, a gold IRA is one option you could consider.

Opening a gold IRA with Goldco lets you invest in gold and other precious metals in physical form while also providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Make elevated interest rates work in your favor

Higher rates punish borrowers, but they can reward savers.

Keeping your emergency fund or short-term retirement reserves in an account earning a competitive yield can help you collect more interest without exposing that money to stock market volatility.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s 10 times the national deposit savings rate, according to the FDIC’s July report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/month minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8 million FDIC Insurance eligibility through program banks.

Lock in a predictable return with CD Valet

A high-yield savings account can be a smart home for your emergency fund and short-term cash. But if you're setting money aside for a goal that's a year or more away, you may be able to earn even more.

With a certificate of deposit (CD), you can lock in a fixed rate for a set term — often at a higher yield than a high-interest savings account, so your earnings remain predictable even if rates change.

CD Valet currently lists nationwide 12-month CDs offering up to 4.40% APY, although available rates, terms and minimum deposits can change.

Before opening a CD or renewing an existing one, a quick check of CD Valet's APY Checkpoint Tool can help you see whether you're getting a competitive rate.

Their platform tracks over 40,000 verified CD rates from FDIC-insured banks and NCUA-insured credit unions nationwide, making it easy to see how your current rate stacks up against the market. Unlike other websites, they offer a broader, unbiased look at the market, so you have a good idea of what’s out there.