The U.S. national debt refers to the total amount of money that the federal government owes to creditors. As of 2025, the debt has surpassed $34 trillion, a figure that continues to rise due to persistent budget deficits—when government spending exceeds revenue. The debt is divided into two main categories: public debt, held by external investors and institutions, and intragovernmental holdings, which are debts the government owes to itself, such as Social Security and other trust funds.
The growing national debt raises concerns among economists and policymakers. High debt levels can lead to increased interest payments, reducing funds available for essential programs like infrastructure, education, and healthcare. If investors begin to doubt the government's ability to repay, borrowing costs may rise, which could impact the overall economy.
However, the U.S. benefits from the global trust in its financial stability. The U.S. dollar remains the world’s primary reserve currency, allowing the country to borrow at relatively low interest rates. Still, managing the national debt requires careful fiscal planning, responsible spending, and long-term economic growth strategies. If left unchecked, the debt could pose significant risks to future economic stability and the government’s ability to respond to crises.