As of February 2023, total federal debt was $31.5 trillion $24.6 trillion held by the public and $6.9 trillion in intragovernmental debt. Total US federal government debt breached $30 trillion mark for the first time in history in February 2022. The aggregate, gross amount that Treasury can borrow is limited by the United States debt ceiling. In recent decades, aging demographics and rising healthcare costs have led to concern about the long-term sustainability of the federal government's fiscal policies. For example, debt held by the public as a share of GDP had peaked just after World War II (113% of GDP in 1945), but has since reached new highs of up to 134.84% of GDP during the second quarter of 2020. The ratio of debt to GDP may decrease as a result of a government surplus or via growth of GDP and inflation. public debt as a share of gross domestic product (GDP) increases during wars and recessions and then subsequently declines. Debt held by government accounts represents the cumulative surpluses, including interest earnings, of various government programs that have been invested in Treasury securities. "Debt held by government accounts" or "intragovernmental debt" – is non-marketable Treasury securities held in accounts of programs administered by the federal government, such as the Social Security Trust Fund."Debt held by the public" – such as Treasury securities held by investors outside the federal government, including those held by individuals, corporations, the Federal Reserve, and foreign, state and local governments.There are two components of gross national debt: In general, government debt increases as a result of government spending and decreases from tax or other receipts, both of which fluctuate during the course of a fiscal year. In a deficit year the national debt increases as the government needs to borrow funds to finance the deficit, while in a surplus year the debt decreases as more money is received than spent, enabling the government to reduce the debt by buying back some Treasury securities. The terms "national deficit" and "national surplus" usually refer to the federal government budget balance from year to year, not the cumulative amount of debt. ![]() ![]() The national debt at any point in time is the face value of the then-outstanding Treasury securities that have been issued by the Treasury and other federal agencies. 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.
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