The U.S. national debt is the total amount the federal government owes to creditors, both domestic and foreign. As of 2025, it exceeds $34 trillion, driven by years of budget deficits where government spending surpassed revenue. Major contributors include defense spending, Social Security, Medicare, and interest payments on existing debt. The debt is held in two main parts: public debt and intragovernmental holdings. Rising debt levels raise concerns about economic stability, higher interest rates, and future tax burdens. While borrowing can stimulate economic growth in the short term, unchecked debt may threaten long-term fiscal health. Policymakers face pressure to balance spending with sustainable revenue strategies.