Glossary

National debt

The total amount the federal government owes from past borrowing, including debt held by the public and by government accounts.

Also called: federal debt, public debt, gross debt

The national debt is the accumulated total of all the federal government's past deficits, less surpluses. It has two main parts: debt held by the public, such as Treasury securities owned by investors, the Federal Reserve and foreign governments; and intragovernmental holdings, such as the Social Security trust fund's special-issue Treasury securities.

The total has risen steadily and exceeded $35 trillion in 2024. Economists usually look at the debt relative to the size of the economy, the Debt-to-GDP ratio, and at interest costs, which have risen with higher interest rates. The Treasury publishes the exact total daily.

Views differ on the risks. Deficit hawks argue that rising debt will raise interest costs, crowd out private investment, limit the government's ability to respond to crises and could eventually lead to a fiscal crisis. Others emphasize that the U.S. borrows in its own currency and that the debt is manageable if growth and interest rates stay favorable, and they warn against sudden cuts. The debt is a recurring political theme: the Tea Party and Republicans have pushed for cuts, particularly during standoffs over the debt ceiling. It differs from the annual budget deficit.

Last reviewed November 8, 2026

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Related terms

Budget deficit The amount by which federal spending exceeds revenue in a given year, financed by borrowing. Debt ceiling A statutory cap on the total amount the Treasury may borrow to pay obligations Congress has already approved. Debt-to-GDP ratio Federal debt measured as a share of the economy's annual output, used to judge whether borrowing is sustainable. Unfunded liabilities Promised future benefits, such as Social Security and Medicare payments, that are not covered by dedicated funding projected to be available. Crowding out The idea that government borrowing raises interest rates or uses resources that would otherwise go to private investment and spending.