#USNationalDebt It refers to the total amount of money borrowed by the U.S. government to cover its budget deficit—when its expenditures exceed its revenues. The debt consists of two components: public debt held by corporations or individuals, and internal government debt held by federal agencies. Debt often rises due to defense spending, social programs, and economic crises. The debt currently stands at more than $34 trillion, raising concerns about its impact on the U.S. economy, interest rates, and the burden on future generations.