#USNationalDebt The U.S. national debt refers to the total amount of money the federal government owes to creditors. As of 2025, it has surpassed $34 trillion, driven by consistent budget deficits where government spending exceeds revenue. The debt is divided into two main categories: public debt, held by individuals, institutions, and foreign governments, and intragovernmental debt, owed to government programs like Social Security. Key drivers include defense spending, healthcare, interest payments, and emergency funding such as COVID-19 relief. While borrowing supports economic growth during downturns, excessive debt can lead to rising interest costs, reduced fiscal flexibility, and potential long-term impacts on economic stability. Policymakers face the challenge of balancing essential public services and investment with fiscal responsibility. Addressing the debt requires a combination of spending reforms and revenue adjustments. As the national debt continues to grow, it remains a central issue in U.S. economic and political debates, influencing future policy decisions and financial planning.