National debt of the United States

The national debt of the United States is the total national debt owed by the federal government of the United States to treasury security holders. At any given point in time, the U . national debt is the cumulative face value of all outstanding treasury securities that have been issued by the U . Department of Treasury and American federal agencies. It does not generally include unfunded or future obligations. The U . has the largest external debt in the world alongside the world's largest economy (GDP). The ratio of debt to GDP oscillates as economic growth, inflation, or public finances change. The nation's debt-to-GDP has historically increased during armed conflicts, pandemics, and economic recessions and then subsequently declines. The U . Treasury publishes a daily total of the national debt, which as of May 2026 was $39 trillion. The federal government generates revenue through taxation before spending on public services, creating a government budget balance. If not balanced, the government produces either a "national deficit" or "national surplus". If public spending exceeds revenue, the deficit is financed by borrowing money and taking on debt. If revenue exceeds public spending, the surplus is used to reduce the debt. The national debt is the cumulative debt the government takes on to finance deficits. This debt typically increases with higher government spending and decreases with higher tax receipts, both of which fluctuate during a fiscal year. The government is limited in how much it can borrow in aggregate through the U . debt ceiling. There are two main components of U . national debt:

Debt held by the public: held by investors outside the federal government, including those held by individuals, corporations, the Federal Reserve, and foreign, state and local governments. Debt held by government (intragovernmental debt): non-marketable Treasury securities held in accounts of programs administered by the federal government, such as the Social Security Trust Fund.