The US national debt is approximately $36.56 trillion as of March 6, 2025. To break it down further:
- *Debt Held by the Public*: Around $29 trillion
- *Intragovernmental Holdings*: About $7.4 trillion
The national debt has been increasing over the years due to various factors such as ¹ ²:
- *Government Spending*: Increased funding for programs and services, especially during the COVID-19 pandemic
- *Tax Cuts*: Reduced tax revenues due to tax cuts and decreased corporate tax receipts
- *Aging Demographics*: Rising costs for Social Security, Medicare, and other programs due to an aging population
- *Rising Healthcare Costs*: Increasing healthcare expenses and their impact on the federal budget
The US government pays interest on this debt, which can fluctuate based on interest rates and the total debt amount. In July 2023, the annualized cost of servicing the debt was $726 billion, accounting for 14% of total federal spending ¹.
