#USNationalDebt The U.S. national debt refers to the total amount of money that the federal government owes to creditors. As of 2025, the national debt exceeds $34 trillion and continues to grow. It is the result of the government borrowing money to cover budget deficits—when annual spending exceeds revenue from taxes and other sources.

The national debt is divided into two main parts: public debt, which is owed to outside investors including individuals, businesses, and foreign governments, and intragovernmental holdings, which are funds borrowed from government accounts, such as Social Security.

Several factors contribute to the rising debt, including tax cuts, military spending, economic stimulus packages, and interest payments. Major recent drivers include COVID-19 relief spending, rising healthcare costs, and an aging population drawing on entitlement programs.

High national debt can have both positive and negative effects. On one hand, borrowing helps the government invest in infrastructure, defense, and social programs. On the other, long-term debt growth may increase interest payments, crowd out private investment, and reduce financial flexibility during future crises.

Managing the national debt requires a balance between supporting economic growth and ensuring fiscal responsibility through reforms in spending and revenue policies.