#USNationalDebt The national debt of the United States is the total national debt that the federal government of the United States owes to the holders of Treasury bonds. The national debt at any given time is equivalent to the nominal value of the Treasury bonds in circulation issued by the Treasury and other federal agencies.

Related terms, such as "national deficit" and "national surplus," typically refer to the year-over-year budget balance of the federal government and not to the accumulated amount of debt. In a deficit year, the national debt increases as the government needs to borrow to finance it. In a surplus year, the debt decreases as it receives more money than it spends, allowing the government to reduce it by repurchasing Treasury bonds. In general, the debt of the U.S. government increases as a result of public spending and decreases from tax revenues or other funds, both of which fluctuate during a fiscal year.