US National Debt – Overview (2025)
As of mid-2025, the United States national debt has surpassed $34.8 trillion. This figure represents the total amount of money the U.S. federal government owes to creditors, including individuals, institutions, foreign governments, and itself (in the form of intergovernmental holdings).
Key Points:
Rising Debt: The debt has increased significantly in recent years due to stimulus spending (e.g., COVID-19 relief), military expenses, and interest payments.
Debt-to-GDP Ratio: Currently above 120%, meaning the debt exceeds the total annual output (GDP) of the U.S. economy.
Interest Payments: The U.S. pays over $1 trillion annually just in interest—one of the largest federal expenses.
Major Holders: The largest foreign holders are Japan and China, while the majority is held domestically (Federal Reserve, mutual funds, pensions).
Debate: Economists and policymakers debate the long-term sustainability. Some warn of inflation and default risk, while others argue it's manageable as long as the economy grows.