#USNationalDebt The national debt of the United States is the total amount of money that the federal government owes to bondholders, including both domestic and foreign investors. Currently, the national debt amounts to over $35.77 trillion, exceeding the country's gross domestic product. This debt accumulates from annual budget deficits, where government spending exceeds tax revenues.

How is the national debt generated?

The federal government incurs budget deficits when it spends more than it collects in taxes. To cover these deficits, the government issues Treasury bonds that are purchased by investors, financial institutions, the Federal Reserve, and other foreign governments. The national debt is the sum of these deficits over time, plus the interest accrued on the bonds.