The U.S. national debt exceeds $36.2 trillion as of May 2025, equating to roughly $106,000 per person or 122% of GDP, the highest since World War II. It comprises debt held by the public ($28.95 trillion) and intragovernmental holdings ($7.26 trillion), primarily from federal trust funds like Social Security. The debt grows due to annual deficits, where government spending exceeds revenue, driven by aging populations, rising healthcare costs, and higher interest rates. Interest payments, now at $881 billion annually, consume a significant portion of federal spending. The debt-to-GDP ratio, a key measure of economic burden, hit 133% during the 2020 pandemic. While manageable short-term, unchecked growth risks economic instability, higher taxes, or reduced public services. Proposed solutions include raising revenues, cutting spending, or reforming entitlement programs, but political gridlock persists.
