August 24, 2026

National Debt Nears $40 Trillion — Why Does That Matter?

The U.S. national debt is about to cross $40 trillion, a milestone economists call a warning sign. Students explore how the debt grew, what interest costs mean, and why Congress struggles to agree on a fix.

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PBS News Hour Classroom

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The national debt is expected to hit a record high as soon as this week, crossing a major threshold of $40 trillion. Congressional correspondent Lisa Desjardins explains why that milestone is a warning sign for many economists.

View the transcript of the story.

Short on time? Watch the video and complete the following See, Think, Wonder questions: What did you notice? What did the story make you think? What would you want to learn more about?

Warm-Up Questions

When is the national debt expected to cross $40 trillion?
Why is that number significant, according to economists?
What does the U.S. pay to cover interest costs on the debt every year?
How does the national debt impact the economy?
Who are some of the people seeking to reduce the national debt?

Essential Questions

Why do you think it's so difficult for Congress and the president to agree on ways to reduce the national debt?
Do you think reducing spending, raising taxes or both would be the best way to address the debt? Do you think other priorities mean that the debt will have to remain high for now?
Media literacy: Lisa Desjardins is News Hour's Congressional correspondent (reporter who covers Congress and Congressional races). Why do you think she was the lead reporter on this segment about national debt?

What Students Can Do

Students can learn more about the debt and deficit by watching the following segment

After watching the segment, what do you think might be the best way to help the public understand the impact of public debt? Check out this activity to plan a campaign around raising awareness of the debt and consequences for everyone living in the U.S.

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Republished with permission from PBS News Hour Classroom.

Critical Thinking

PBS News Hour Classroom

PBS News Hour Classroom helps teachers and students identify the who, what, where and why-it-matters of the major national and international news stories. The site combines the best of News Hour's reliable, trustworthy news program with lesson plans developed specifically for... See More