The US gross federal debt is currently more than $36 trillion. This significant sum represents the total outstanding public debt owed by the federal government.
Understanding the Gross Federal Debt
The national debt, also known as the gross federal debt, encompasses all the money the U.S. government has borrowed over time and has not yet repaid. This vast amount includes two primary components:
- Debt Held by the Public: This is the portion of the national debt owed to various entities outside of the federal government itself. It includes individuals, corporations, state and local governments, foreign governments, and the Federal Reserve System. Essentially, this is the debt that the government owes to "others" – external entities who have purchased U.S. Treasury securities.
- Intragovernmental Holdings: This component represents debt that the government owes to its own accounts. These are primarily federal trust funds, such as those for Social Security and Medicare, along with other government accounts that invest their surpluses in special U.S. Treasury securities. In very basic terms, this can be thought of as debt that the government owes to "itself."
| Debt Component | Description |
|---|---|
| Debt Held by the Public | Money borrowed from external sources, including individuals, businesses, state and local governments, foreign investors, and central banks. This is the more commonly cited figure when discussing the national debt. |
| Intragovernmental Holdings | Money owed by the Treasury to various government agencies, particularly federal trust funds like Social Security and Medicare. These funds often invest their surpluses in government securities, creating an internal government debt. |
Why the National Debt Matters
The size of the national debt is a critical economic indicator. It influences the government's ability to fund future programs, affects interest rates, and can have long-term implications for economic growth and stability. Understanding its components provides insight into the complexity of federal finances.
For the most current figures on the national debt, official data is regularly updated by the U.S. Department of the Treasury. You can typically find detailed and up-to-date information on the national debt through official government sources that track it on a daily basis.
