#USNationalDebt

The U.S. national debt is the total amount of money the federal government owes to creditors, both domestic and international. It accumulates when government spending exceeds revenue from taxes and other sources. As of 2025, the debt exceeds \$34 trillion, driven by consistent budget deficits, entitlement programs, defense spending, and interest payments. The debt is held in two parts: intragovernmental holdings and public debt. Rising national debt raises concerns about inflation, interest rates, and long-term economic stability. Policymakers face challenges balancing economic growth with fiscal responsibility. Reducing the debt requires a combination of spending cuts, revenue increases, and bipartisan commitment to sustainable budgeting.