The U.S. debt tops a record-shattering $40 trillion. Yes, with a T.

The federal government's accumulated debt has reached a record $40 trillion, according to a daily update from the Treasury Department. Government spending is expected to exceed tax revenues by more than $2 trillion this year. Tasos Katopodis/Getty Images North America hide caption

The federal debt topped $40 trillion Wednesday, a new high-water mark for red ink that shows no sign of receding.

The news, reported by the Treasury Department in its daily financial update, comes just five months after the debt surpassed $39 trillion. The government continues to pile up debt at a rapid clip, as spending outstrips revenue by more than $2 trillion a year.

"Our current fiscal trajectory is plainly unsustainable, and that's the best-case scenario," said Margaret Spellings, president of the Bipartisan Policy Center. "Even in the rosiest scenarios, we're speeding toward a cliff and refusing to turn the wheel."

The deficit widened further after the Supreme Court struck down many of President Trump's tariffs, forcing the Treasury to refund more than $100 billion in import taxes that were collected illegally.

The administration sought to blame the ballooning deficit on Democrats.

"President Trump pledged to clean up Joe Biden's fiscal mismanagement," White House spokesman Kush Desai said in a statement. "That's why the Trump administration has been focused on slashing waste, fraud, and abuse in federal spending while accelerating economic growth to get America's debt-to-GDP ratio trending in the right direction again."

Government revenues have grown 3% this fiscal year — but spending has grown even faster. And the debt-to-GDP ratio has worsened since Trump returned to the White House.