$BTC The U.S. national debt refers to the total amount of money the federal government owes to creditors. It results from borrowing to cover budget deficits—when government spending exceeds revenue. As of 2025, the debt exceeds $34 trillion. Major contributors include military spending, social programs, and interest on existing debt. Debt is financed by selling Treasury securities to individuals, institutions, and foreign governments. While borrowing helps stimulate the economy during downturns, excessive debt can lead to higher interest rates, reduced investment, and inflation concerns. Managing the debt requires balancing fiscal responsibility with economic growth and essential public services.