US national debt has climbed above $39 trillion as of early May 2026, surpassing GDP for the first time since World War II amid large federal deficits totaling nearly $1 trillion in the fiscal year 2026's first five months. CBO's February baseline projects a $1.9 trillion FY2026 deficit—5.8% of GDP—fueling steady increases at roughly $8 billion daily, with debt held by the public at $31.3 trillion. No fiscal policy shifts indicate an imminent peak; instead, ongoing appropriations battles and Treasury borrowing announcements underscore upward pressure. Traders eye FY2026 budget reconciliation, midterm election impacts on spending priorities, and the $41.1 trillion debt ceiling's headroom through late 2026 for potential catalysts.