The national debt of the United States is the total amount of money that the U.S. federal government owes to the holders of treasury bonds. The total U.S. federal debt was approximately $36.56 trillion in March 2025.

*Components of National Debt:*

- *Public Debt*: Represents the amount the government owes to bondholders, including individuals, corporations, and foreign financial institutions.

- *Intragovernmental Debt*: Represents the amount the government owes to its internal accounts, such as the Social Security Trust Fund.

*Reasons for the Growth of National Debt:*

- *Government Spending*: Increased government spending can lead to an increase in national debt.

- *Taxes*: Insufficient taxes can lead to an increase in national debt.

- *Economic Crises*: Economic crises, such as the COVID-19 pandemic, can lead to an increase in national debt due to increased government spending and reduced revenues.

*Effects of National Debt:*

- *Increased Interest Costs*: Growing national debt can lead to increased interest costs, which may affect government spending and the economy.

- *Impact on Credit Rating*: Increasing national debt can lead to a downgrade of the United States' credit rating, which may increase borrowing costs.

- *Impact on the Economy*: Rising national debt can have negative effects on the economy, such as inflation and reduced investment.