#USNationalDebt The U.S. national debt is the total amount of money the federal government owes to creditors. It consists of two main components: debt held by the public and intragovernmental holdings. The debt increases when the government spends more than it collects in taxes and other revenue. As of 2025, the debt has surpassed $34 trillion, raising concerns about fiscal sustainability. Interest payments on the debt are a growing portion of the federal budget, potentially crowding out spending on essential services. Economists debate the long-term effects, but most agree that rising debt levels must eventually be addressed through spending cuts, tax increases, or a combination of both.