What does it mean to have “National Debt”? It is the amount of money the Federal Government has borrowed, since the Nation’s inception in 1776, to cover the outstanding balance of expenses. Essentially, it is similar to your mortgage, car, student, and credit cards loans.
How much is the National Debt for America? $37 trillion
What is the objective of having debt? Taking out this debt allows the Federal Government to pay for programs and services for the American public such as Social Security, Health, Military, Medicare, and others.
So what is a budget deficit? In a fiscal year, when spending (money for the programs and services for the American public) exceeds revenue (money from Federal Income Tax). The debt increases.
How does the U.S. pay for the deficit? It borrows money by selling marketable securities such as Treasury bonds, bills, notes, and floating rate notes, and Treasury inflation-protected securities (TIPS).
How does U.S. government generate revenue? Via taxes from us and corporations
Breakdown of U.S. Government’s Revenue
* Individual Income Taxes: 50%
* Social Security & Medicare Taxes: 34%
* Corporate Income Taxes: 8%
How much has the government generated in revenue thus far in 2025? $4.7 trillion
How much have we spent? $6.7 trillion
What is the current deficit? $2.0 trillion
How much do we spend on each one based on our current budget?
* Social Security (retirement, disability, and survivor benefits) : 22%
* Medicare (federal health insurance for people 65 and older) : 14%
* Interest on Debt: 14%
* Military: 13%
* Health: 13%
This is over 75% of the budget.
How much has the National Debt increased on average per 4-year term per President since 2001? (Source):
* George W. Bush (2001 - 2009): $2.1 trillion per term (Iraq and Afghanistan Invasions)
* Barack Obama (2009 - 2017): $3.8 trillion per term (Great Recession)
* Donald Trump (2017 - 2021): $7.8 trillion per term (COVID Stimulus)
* Joe Biden (2021 - 2025): $8.5 trillion per term (COVID Stimulus)
Who holds most of our debt? (Source)
* Countries (Japan, UK, China, and 30+ other countries): 24%
* Federal Reserve: 23%
* Mutual Funds: 22%
* Other Domestic: 15%
Total % of Debt: 84%
Sources: Fiscal Data Treasury
