#USNationalDebt The **U.S. national debt** is the total amount of money owed by the federal government, consisting of **public debt** (owed to investors, including individuals, corporations, and foreign governments) and **intragovernmental debt** (owed to other government agencies, like Social Security).
### **Current U.S. National Debt (June 2024)**
- **Total Debt:** ~$34.9 trillion ([U.S. Treasury]())
- **Debt-to-GDP Ratio:** ~123% (GDP is ~$28.3 trillion)
### **Key Drivers of Debt Growth**
1. **Deficit Spending** – The U.S. runs annual budget deficits (spending > revenue).
- **2023 Deficit:** ~$1.7 trillion
- **2024 Deficit (projected):** ~$1.6 trillion ([CBO](https://www.cbo.gov/))
2. **Tax Cuts & Spending Increases** – Policies like the **2017 TCJA** (Tax Cuts and Jobs Act) reduced revenue.
3. **Interest Costs** – Rising interest rates increase debt servicing costs (~$900B in 2024).
4. **Economic Crises** – COVID-19 relief, 2008 financial crisis, and wars added trillions.
### **Who Owns the U.S. Debt?**
- **Foreign Holders (~30%):** Japan (~$1.1T), China (~$770B), UK, others.
- **U.S. Institutions & Investors (~50%):** Federal Reserve, mutual funds, banks.
- **Government Trust Funds (~20%):** Social Security, Medicare.
### **Debt Ceiling & Political Battles**
The U.S. has a **statutory debt limit**, requiring Congressional approval to raise it (last raised in **June 2023