#USNationalDebt

The national debt of the United States is the total amount of money the federal government has borrowed and has not yet paid back. As of June 2025, this figure exceeds $36.2 trillion, representing approximately 123% of the country's Gross Domestic Product (GDP). This debt accumulates mainly due to annual budget deficits, that is, when government spending exceeds its revenues from taxes and other sources.

A large portion of this debt is held by domestic investors (such as pension funds and individuals) and U.S. intergovernmental agencies (such as Social Security funds). A significant part is also owned by foreign investors, with Japan and the United Kingdom being the largest holders.

The implications of such high debt are varied: it can lead to higher borrowing costs for the government, which in turn translates into a larger portion of the budget allocated to interest payments. This can "crowd out" private investment, limit long-term economic growth, and exert upward pressure on interest rates and inflation. Historically, national debt has increased dramatically during times of war or economic crises, such as the Great Recession and the COVID-19 pandemic, due to increased emergency spending. Managing this debt is a constant challenge for U.S. policymakers.