#USNationalDebt

The national debt of the U.S. currently stands at approximately $36.56 trillion, with debt held by the public at $29 trillion and intragovernmental holdings at $7.4 trillion. This debt represents the total amount owed by the federal government to treasury bondholders.

*Key Components of the National Debt:*

- *Debt Held by the Public*: This portion of the debt is owed to individual and institutional investors, foreign governments, and other entities outside the U.S. government.

- *Intragovernmental Debt*: This portion represents the amount owed to government trust funds, such as the Social Security Trust Fund.

*Factors Contributing to the Growth of the National Debt:*

- *Government Spending and Deficits*: The national debt increases when the government spends more than it receives in revenue, resulting in a budget deficit.

- *Aging Demographics and Healthcare Costs*: Government fiscal policies are under pressure due to rising healthcare costs and an aging population.

- *Interest Costs*: The annualized cost of servicing the debt was $726 billion in July 2023, representing 14% of total federal spending.

*Projections and Concerns:*

- The Congressional Budget Office (CBO) projects that federal debt held by the public will rise from 99% of GDP in 2024 to 116% in 2034 and could reach 172% of GDP by 2054 if current laws remain unchanged.

- The growing national debt may lead to concerns about the long-term sustainability of the federal government's fiscal policies.¹