Treasury Secretary Scott Bessent said Thursday that the United States can "grow" its way beyond the $40 trillion national debt, a threshold crossed for the first time on Wednesday. In an interview on CNBC's "Squawk on the Street," Bessent downplayed the significance of the round number, telling co-host Sara Eisen, "There's nothing magic about the $40 trillion number, and we can grow our way out of that."
Bessent's remarks come as the federal government's total debt—including obligations to itself—hit $40 trillion, according to Treasury data. The publicly held portion, which includes debt owed to outside entities like foreign governments and investors, stands at roughly $32.2 trillion, with the remaining $7.8 trillion held in government trust funds such as Social Security, per the Committee for a Responsible Federal Budget.
The Treasury chief sought to counter what he called "misinformation" about the deficit and the debt-to-GDP ratio, arguing that the current trajectory is manageable. He pointed to tariff refunds mandated by the Supreme Court in February, which struck down President Trump's emergency tariffs, as a temporary distortion. Bessent said U.S. Trade Representative Jamieson Greer would implement "the same level of tariffs," and he expects 2026 tariff revenue to match 2025 levels.
"With the section 301 tariffs, I am confident that we will be back to the same level if not higher of tariff income for last year," Bessent told reporters outside the White House, where he also noted that the debt appears smaller when measured against publicly traded amounts.
Bessent blamed the Biden administration for the current fiscal state, claiming it left "this mess" with the highest deficit-to-GDP ratio "in history" outside of wartime or recession. The Supreme Court's 6-3 ruling led to roughly $100 billion in tariff refunds to companies that had paid duties under Trump's sweeping "liberation day" tariffs from April 2025. Amazon, for instance, received $600 million in refunds in its second financial quarter.
The comments come amid growing concerns about fiscal sustainability, with the national debt continuing to climb. Some analysts have warned that the combination of tax cuts and spending increases could exacerbate the problem. The Treasury has also been increasing bond buybacks as the 30-year yield recently hit a 19-year high, reflecting market jitters over the debt load.
Bessent's optimistic tone contrasts with recent reports that the GOP has abandoned fiscal restraint, as the debt approached $40 trillion just days ago. The Treasury has also moved to crack down on immigrant tax credits and exempt domestic LLCs from reporting requirements, actions that have drawn both praise and criticism.
As the debt ceiling debate looms, Bessent's assertion that growth can solve the debt problem is likely to face scrutiny from fiscal hawks and Democrats alike. The Treasury secretary's comments signal an administration stance that prioritizes economic expansion over austerity measures, a position that could shape the upcoming budget negotiations.
