#USNationalDebt

The U.S. national debt is the total amount of money that the federal government owes to creditors. As of 2025, it has surpassed $34 trillion, driven by decades of spending that outpaced revenue. The debt is primarily held in two parts: public debt, owned by investors, foreign governments, and institutions, and intragovernmental holdings, which are debts the government owes to itself, such as Social Security trust funds.

Several factors contribute to the rising debt, including tax cuts, increased entitlement spending, defense budgets, and emergency spending such as during the 2008 financial crisis and the COVID-19 pandemic. Interest payments alone consume a growing portion of the federal budget, making it harder to fund other priorities.

Economists debate the impact of high national debt. Some argue it’s manageable due to the U.S. dollar’s global reserve status and the country’s ability to borrow at low interest rates. Others warn that continued borrowing could eventually slow economic growth, raise interest rates, and limit policy flexibility in future crises.

Addressing the debt would likely require a combination of spending cuts, tax reforms, and long-term structural changes to programs like Medicare and Social Security—steps that are politically difficult but increasingly urgent.