The U.S. National Debt represents the total amount of money that the federal government owes to creditors. It is composed of two main parts: public debt, held by investors including individuals, corporations, and foreign governments; and intragovernmental holdings, which are debts the government owes itself, such as funds borrowed from Social Security and Medicare trust funds.
As of mid-2025, the U.S. national debt exceeds $34 trillion, making it the highest in U.S. history. This debt is the result of continuous budget deficits, where annual government spending surpasses its revenue, primarily from taxes. Major contributing factors include military spending, healthcare, social security obligations, and economic stimulus efforts such as those during the COVID-19 pandemic.
The debt is managed by the U.S. Department of the Treasury, which issues Treasury securities to raise funds. While some level of debt is normal for a growing economy, excessive debt raises concerns about inflation, interest rates, credit rating, and long-term economic stability.
Economists debate its impact: some argue high debt could crowd out private investment, while others suggest it is manageable due to the U.S. dollar's reserve currency status and strong global demand for Treasury bonds.
In summary, the U.S. national debt is a complex and critical issue, deeply tied to fiscal policy, political decisions, and economic health.