As of June 2025, the U.S. national debt has crossed $37 trillion, with a debt-to-GDP ratio of approximately 123%, projected to rise to 118% by 2035 and potentially 156% by 2055, driven by annual deficits like 2024’s $1.8 trillion (6.4% of GDP), fueled by crisis spending, an aging population, rising healthcare costs, and insufficient tax revenue. Comprising roughly $29.6 trillion in public debt and $7.4 trillion in intragovernmental debt, it faces a $36.1 trillion debt ceiling, with default risks looming by August 2025 without congressional action, potentially triggering global economic turmoil. Foreign holders, led by Japan and China, own about $7.7 trillion, while interest payments, now $1.1 trillion annually, strain the budget, sparking debate over whether high debt definitively hinders growth.
