#USNationalDebt The U.S. national debt represents the total accumulated borrowing by the federal government to finance its expenditures that exceed its revenues. As of May 2025, this figure stood at approximately $36.2 trillion. This staggering sum is a consequence of persistent budget deficits, where government spending outstrips tax collection.
The debt is held by various entities, including domestic investors (like individuals, corporations, and pension funds), U.S. government agencies, the Federal Reserve, and foreign investors. While a portion of the debt is essentially the government owing money to itself, the publicly held debt and foreign holdings are particularly scrutinized.
The growing national debt has several economic implications. It leads to increasing interest payments, which divert a larger portion of the federal budget away from other critical investments like infrastructure, education, and research. This can "crowd out" private investment by increasing competition for available capital, potentially slowing economic growth. Furthermore, a consistently high debt-to-GDP ratio can raise concerns about the nation's fiscal stability and potentially impact interest rates and the value of the U.S. dollar. Addressing the debt often involves difficult policy choices regarding spending cuts or tax increases.