U.S. National Debt Growth by Year

Key findings:

• The US national debt surpassed $37 trillion in July 2025, making it the largest sovereign debt globally in absolute terms.
• The gross debt-to-GDP ratio is 140%, signaling that the US owes significantly more than it produces annually.
• The US debt grows by approximately $12.1 billion per day, driven by persistent deficits and rising interest costs.
• Average national debt per citizen reached $104,599 in 2024 at current prices, nearly 20x higher than in 1980.
• Annual interest payments on the federal debt are projected to hit $952 billion in 2025, nearly 3.6% of GDP.
• The Federal Reserve holds over 15% of the US debt held by public holders.

What is the US national debt?

The US national debt refers to the total amount of money the federal government owes to creditors. This includes both federal debt held by the public and intragovernmental holdings. But what is debt, really, in this context? Simply put, it’s money borrowed by the government to cover expenses that exceed tax revenues.

The national debt’s meaning starts with recognizing the distinction between two categories: public debt, which is owed to external investors, and intragovernmental debt, which is borrowed from internal trust funds such as Social Security. The combined total makes up the national debt.

For those wondering about the national debt’s meaning, it’s more than just a financial figure. It reflects long-term fiscal policy choices, economic health, and future obligations. So, how does US debt work? Each year, if federal spending surpasses revenue, the government issues Treasury securities to finance the gap, thereby increasing the debt.

In short, the national debt is a cumulative result of annual budget deficits and policy decisions over time. Understanding how it functions helps illuminate broader debates around taxes, spending, and economic sustainability.

How big is the US national debt today?

• The US national debt is $37 trillion as of July 2025.

As of mid-2025, the US national debt has surpassed $37 trillion, continuing its upward trajectory at a rapid rate. The US debt clock updates in real-time, revealing just how fast the numbers climb, raising questions like how much US debt increases each day. While estimates vary, current figures suggest the debt grows by billions daily due to interest and spending commitments.

When we look at the national debt of the United States in a global context, it holds the title for the biggest national debt in the world by total dollar amount. This makes the US a consistent leader among the largest national debts, far exceeding countries with similarly large economies.

In terms of the average national debt per citizen, Americans now each effectively carry over $100,000 in federal obligations. The size of the US national debt not only reflects current fiscal policies but also decades of accumulated budget deficits, economic crises, and tax policy updates.

While the numbers can seem abstract, tools like the US debt clock provide an immediate, visual sense of scale and of urgency. With the largest recorded national debt, the US finds itself at the center of a global conversation about sustainability, inflation, and long-term economic strategy.

US debt compared to GDP

So, if the national debt exceeds $37 trillion, how does it compare to GDP?

• US nominal GDP is $26.5 trillion.

As of 2025, the current US nominal GDP is approximately $26.5 trillion, while the national debt surpasses $37 trillion. This puts the US gross debt-to-GDP ratio at 140%, meaning the country owes significantly more than it produces annually.

This US GDP vs debt imbalance raises concerns about sustainability and long-term economic resilience. Economists often use this ratio as a benchmark for evaluating a nation’s capacity to service its debt. A rising ratio can indicate mounting fiscal pressure, while a declining one may suggest improving balance.

In short, when comparing US GDP to the national debt, the numbers highlight a growing divergence that has both political and economic implications.

The debt-to-GDP ratio indicates the relative burden of debt on the economy, but to understand how the US arrived at this point, we must examine the historical accumulation of the national debt itself.

The history of US national debt

The US national debt by year

To understand how the national debt evolved into its current state, it’s crucial to look at its historical trajectory. This section presents a detailed US national debt by year chart, tracing changes over more than two centuries.

The US national debt by year graph below illustrates major changes driven by wars, recessions, and policy shifts.

Data taken from: U.S. Treasury Fiscal Data – https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding⁴

• In 1790, the US national debt stood at just $71 million; by 2025, it had risen to $37 trillion (as of July 2025).
• Between 2008 and 2025, the debt grew by over $26 trillion, largely due to stimulus spending and structural deficits.
• The largest single-year increase occurred in 2020, when the debt jumped by over $4.2 trillion amid the COVID-19 response.

The US national debt by year since 1970

Year	Debt, $ million
1790	71
1791	75
1792	77
1793	80
1794	78
1795	81
1796	84
1797	82
1798	79
1799	78
1800	83
1801	83
1802	81
1803	77
1804	86
1805	82
1806	76
1807	69
1808	65
1809	57
1810	53
1811	48
1812	45
1813	56
1814	81
1815	100
1816	127
1817	123
1818	103
1819	96
1820	91
1821	90
1822	94
1823	91
1824	90
1825	84
1826	81
1827	74
1828	67
1829	58
1830	49
1831	39
1832	24
1833	7
1834	5
1835	0
1836	0
1837	0
1838	3
1839	10
1840	4
1841	5
1842	14
1843	20
1843	33
1844	23
1845	16
1846	16
1847	39
1848	47
1849	63
1850	63
1851	68
1852	66
1853	60
1854	42
1855	36
1856	32
1857	29
1858	45
1859	58
1860	65
1861	91
1862	524
1863	1,120
1864	1,816
1865	2,681
1866	2,773
1867	2,678
1868	2,612
1869	2,588
1870	2,481
1871	2,353
1872	2,253
1873	2,234
1874	2,252
1875	2,232
1876	2,180
1877	2,205
1878	2,256
1879	2,350
1880	2,120
1881	2,069
1882	1,918
1883	1,884
1884	1,831
1885	1,864
1886	1,775
1887	1,658
1888	1,693
1889	1,619
1890	1,552
1891	1,546
1892	1,588
1893	1,546
1894	1,632
1895	1,676
1896	1,770
1897	1,818
1898	1,797
1899	1,992
1900	2,137
1901	2,143
1902	2,159
1903	2,202
1904	2,264
1905	2,275
1906	2,337
1907	2,457
1908	2,627
1909	2,640
1910	2,653
1911	2,766
1912	2,868
1913	2,916
1914	2,912
1915	3,058
1916	3,609
1917	5,718
1918	14,592
1919	27,391
1920	25,952
1921	23,977
1922	22,963
1923	22,350
1924	21,251
1925	20,516
1926	19,643
1927	18,512
1928	17,604
1929	16,931
1930	16,185
1931	16,801
1932	19,487
1933	22,539
1934	27,053
1935	28,701
1936	33,779
1937	36,425
1938	37,165
1939	40,440
1940	42,968
1941	48,961
1942	72,422
1943	136,696
1944	201,003
1945	258,682
1946	269,422
1947	258,286
1948	252,292
1949	252,770
1950	257,357
1951	255,222
1952	259,105
1953	266,071
1954	271,260
1955	274,374
1956	272,751
1957	270,527
1958	276,343
1959	284,706
1960	286,331
1961	288,971
1962	298,201
1963	305,860
1964	311,713
1965	317,274
1966	319,907
1967	326,221
1968	347,578
1969	353,720
1970	370,919
1971	398,130
1972	427,260
1973	458,142
1974	475,060
1975	533,189
1976	620,433
1977	698,840
1978	771,544
1979	826,519
1980	907,701
1981	997,855
1982	1,142,034
1983	1,377,210
1984	1,572,266
1985	1,823,103
1986	2,125,303
1987	2,350,277
1988	2,602,338
1989	2,857,431
1990	3,233,313
1991	3,665,303
1992	4,064,621
1993	4,411,489
1994	4,692,750
1995	4,973,983
1996	5,224,811
1997	5,413,146
1998	5,526,193
1999	5,656,271
2000	5,674,178
2001	5,807,463
2002	6,228,236
2003	6,783,231
2004	7,379,053
2005	7,932,710
2006	8,506,974
2007	9,007,653
2008	10,024,725
2009	11,909,829
2010	13,561,623
2011	14,790,340
2012	16,066,241
2013	16,738,184
2014	17,824,071
2015	18,150,618
2016	19,573,445
2017	20,244,900
2018	21,516,058
2019	22,719,402
2020	26,945,391
2021	28,428,919
2022	30,928,912
2023	33,167,334
2024	35,464,674
2025	36,214,310

Data taken from: U.S. Treasury Fiscal Data – https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding⁴

The data from this US national debt by year graph reveals that debt accumulation is neither linear nor random; it reflects the nation’s major historical events. For instance, the US national debt during 1923 was just $22.3 billion, a modest figure compared to today’s trillions. At that time, the economy operated under a different monetary logic: the US issued silver certificates like the $5 note from 1923, which could be directly exchanged for physical silver. 

• The US national debt during 1923 was $22,350 million.

From near-zero debt in the 1830s to wartime spikes in the 1940s and rapid increase after 2008, the chart shows how each crisis, policy shift, and global event leaves a permanent fiscal mark. The US national debt by year chart is not just a timeline; it’s a mirror of America’s evolving economic foundations and shifting financial priorities.

How much does the US debt increase each day?

The US national debt increases by approximately $12 billion every day in 2024. This rapid rate highlights how deeply government spending continues to exceed revenue.

Data taken from: U.S. Treasury Fiscal Data – https://fiscaldata.treasury.gov/datasets/debt-to-the-penny/debt-to-the-penny¹

The US national debt statistics:

• Average daily increase: $12.1 billion.
• Weekly increase: $84.7 billion.
• Monthly increase: ~$368 billion.
• Yearly pace: $4.4-4.5 trillion.

Despite seeing ршпр nominal increases in recent years, it’s essential to examine the national debt through the lens of inflation-adjusted figures to understand its real growth over time.

US national debt by year, adjusted for inflation

The chart below reveals how the US national debt has changed year by year when accounting for inflationary effects, offering a clearer perspective than raw dollar figures alone.

Data taken from: U.S. Treasury Fiscal Data – https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding⁴, Federal Reserve Bank of St. Louis – https://fred.stlouisfed.org/series/FPCPITOTLZGUSA⁵

• In 1983, the debt increase adjusted for inflation reached +17.38%, one of the largest real expansions of the modern era.
• During 2009, amid the Great Recession, inflation-adjusted debt rose by 19.16%, the highest postwar jump.
• In contrast, in 1974, real debt declined by 7.36%, highlighting periods where inflation outpaced debt growth.

US national debt growth adjusted for inflation

Year	Debt increase rate, %	Inflation rate, %	Debt increase adjusted for inflation, %
1960	0.57	1.46	-0.89
1961	0.92	1.07	-0.15
1962	3.19	1.20	2.00
1963	2.57	1.24	1.33
1964	1.91	1.28	0.63
1965	1.78	1.59	0.20
1966	0.83	3.02	-2.19
1967	1.97	2.77	-0.80
1968	6.55	4.27	2.28
1969	1.77	5.46	-3.70
1970	4.86	5.84	-0.98
1971	7.34	4.29	3.04
1972	7.32	3.27	4.04
1973	7.23	6.18	1.05
1974	3.69	11.05	-7.36
1975	12.24	9.14	3.09
1976	16.36	5.74	10.62
1977	12.64	6.50	6.14
1978	10.40	7.63	2.77
1979	7.13	11.25	-4.13
1980	9.82	13.55	-3.73
1981	9.93	10.33	-0.40
1982	14.45	6.13	8.32
1983	20.59	3.21	17.38
1984	14.16	4.30	9.86
1985	15.95	3.55	12.41
1986	16.58	1.90	14.68
1987	10.59	3.66	6.92
1988	10.72	4.08	6.65
1989	9.80	4.83	4.98
1990	13.15	5.40	7.76
1991	13.36	4.23	9.13
1992	10.89	3.03	7.87
1993	8.53	2.95	5.58
1994	6.38	2.61	3.77
1995	5.99	2.81	3.19
1996	5.04	2.93	2.11
1997	3.60	2.34	1.27
1998	2.09	1.55	0.54
1999	2.35	2.19	0.17
2000	0.32	3.38	-3.06
2001	2.35	2.83	-0.48
2002	7.25	1.59	5.66
2003	8.91	2.27	6.64
2004	8.78	2.68	6.11
2005	7.50	3.39	4.11
2006	7.24	3.23	4.01
2007	5.89	2.85	3.03
2008	11.29	3.84	7.45
2009	18.80	-0.36	19.16
2010	13.87	1.64	12.23
2011	9.06	3.16	5.90
2012	8.63	2.07	6.56
2013	4.18	1.46	2.72
2014	6.49	1.62	4.87
2015	1.83	0.12	1.71
2016	7.84	1.26	6.58
2017	3.43	2.13	1.30
2018	6.28	2.44	3.84
2019	5.59	1.81	3.78
2020	18.60	1.23	17.37
2021	5.51	4.70	0.81
2022	8.79	8.00	0.79
2023	7.24	4.12	3.12
2024	6.93	2.95	3.98

Data taken from: U.S. Treasury Fiscal Data – https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding⁴, Federal Reserve Bank of St. Louis – https://fred.stlouisfed.org/series/FPCPITOTLZGUSA⁵

The history of US debt is a story of economic transformation, global shocks, and evolving fiscal policy. From postwar surpluses to pandemic-driven spikes, the US debt timeline reveals how political decisions and global events shaped long-term borrowing trends. Analyzing the US national debt over the years, both in nominal and inflation-adjusted terms, highlights periods of restraint, such as the 1990s, and episodes of rapid expansion, like the 1980s or 2020s. Understanding the history of national debt isn’t just about numbers; it’s essential context for today’s policy debates and future economic resilience. In sum, the US debt history is more than a chart; it provides context for analyzing the nation’s priorities, crises, and fiscal choices over generations.

How the national debt has grown over time

The growth of the US national debt reflects more than just numbers; it reveals political choices, economic challenges, and national priorities across generations. To fully grasp where we are today, we must trace this evolution through time.

What is the national debt today?

Before diving into the history of US debt, it’s worth noting what the national debt is today: as of 2025, the figure has exceeded $36 trillion, a record high. This staggering amount underscores the long-term trend of rising federal obligations. 

National debt growth since 2000

Looking at the US national debt by year since 2000, we observe a significant upward trend driven by tax cuts, wars, recessions, and emergency spending. The US national debt growth chart reveals that from about $5.6 trillion in 2000, debt climbed steadily through the Bush and Obama years before accelerating sharply in the 2020s.

• US national debt tripling over 20 years: $11 trillion to $36 trillion.
• US national debt growth over the last decade: 86%.
• US federal debt has increased since 2015: 121%.

These shifts are visible in the us national debt growth by year datasets and summarized in the national debt growth chart, showing how government borrowing has scaled far beyond historical norms.

The US debt increased under the president

Analyzing the US debt by the president offers insight into how leadership has influenced borrowing. During the Trump administration, spending rose due to tax reforms and COVID relief:

• The US debt growth during Trump’s administration: $10 trillion increase

Under President Biden, aggressive fiscal packages and continued stimulus further increased the debt:

• The US national debt under the Biden administration: $7 trillion increase

These increases are reflected in the US national debt by month, which shows consistent month-over-month growth in recent years.

The Impact of the COVID-19 Pandemic

The global pandemic brought about exceptionally high government spending. According to US debt historical data and the US national debt growth chart, debt leaped in 2020, with emergency relief and stimulus driving the spike.

• The US federal debt during the COVID‑19 pandemic was $30.9 trillion

The sudden accumulation is often referred to as pandemic debt, a term that highlights the extraordinary fiscal response and its long-term consequences.

Debt Growth Since 2015 and 2016

The national debt growth rate has accelerated sharply since 2015. From $19 trillion in 2016, the number has significantly increased.

• The US federal debt has increased since 2016 from $19 trillion to $33 trillion.

These figures illustrate a rapid expansion pace. If we ask, How much does the US debt increase per year, the answer is now well above $1.5-2 trillion on average, depending on the year. According to the national debt increase per year data, the last five years have been among the most aggressive periods of debt accumulation in US history.

As we’ve seen, the total US national debt has risen significantly over time. But debt in isolation doesn’t tell the full story. To gauge the real weight of this financial burden, it’s essential to measure it against the country’s economic output.

Debt-to-GDP Ratio: How much is too much?

• The current gross debt-to-GDP ratio is 140% as of July 2025.

Understanding the US debt-to-GDP dynamic is critical for evaluating the country’s financial health. The US debt-to-GDP ratio helps answer a key question: how sustainable is the national debt when compared to the size of the economy? This section analyzes the US debt-to-GDP ratio by year to understand long-term patterns and potential risks.

Data taken from: Peterson Foundation – https://www.pgpf.org/national-debt-clock/¹⁰

• In 1946, after World War II, the US debt reached 106% of GDP, the highest level until the COVID-19 era.
• By 2007, that ratio had dropped to just 35%, before surging again due to the 2008 crisis and later the pandemic.
• As of 2024, US gross debt-to-GDP stands at 98%, with projections showing a rise to 119% by 2035.
• The maximum US national debt‑to‑GDP ratio is expected to be 119% in 2035 (in terms of gross debt).

Debt-to-GDP ratio by year

Year	US Federal Debt as a % of GDP
1900	7
1901	6
1902	5
1903	5
1904	5
1905	4
1906	4
1907	4
1908	4
1909	4
1910	4
1911	4
1912	3
1913	3
1914	4
1915	3
1916	3
1917	13
1918	30
1919	33
1920	27
1921	32
1922	31
1923	25
1924	24
1925	22
1926	19
1927	18
1928	17
1929	15
1930	16
1931	22
1932	34
1933	39
1934	44
1935	42
1936	43
1937	40
1938	42
1939	42
1940	44
1941	42
1942	46
1943	69
1944	86
1945	104
1946	106
1947	94
1948	82
1949	77
1950	79
1951	66
1952	60
1953	57
1954	58
1955	56
1956	51
1957	47
1958	48
1959	47
1960	44
1961	44
1962	42
1963	41
1964	39
1965	37
1966	34
1967	32
1968	32
1969	28
1970	27
1971	27
1972	27
1973	25
1974	23
1975	25
1976	27
1977	27
1978	27
1979	25
1980	26
1981	25
1982	28
1983	32
1984	33
1985	35
1986	39
1987	40
1988	40
1989	39
1990	41
1991	44
1992	47
1993	48
1994	48
1995	48
1996	47
1997	45
1998	42
1999	38
2000	34
2001	32
2002	33
2003	35
2004	36
2005	36
2006	35
2007	35
2008	39
2009	52
2010	61
2011	66
2012	70
2013	72
2014	73
2015	72
2016	76
2017	76
2018	77
2019	79
2020	99
2021	97
2022	95
2023	96
2024	98
2025P	100
2026P	102
2027P	103
2028P	105
2029P	107
2030P	109
2031P	111
2032P	113
2033P	115
2034P	117
2035P	119

Data taken from: Peterson Foundation – https://www.pgpf.org/national-debt-clock/¹⁰

This US debt-to-GDP trend illustrates that major spikes align with periods of war, recession, or large-scale fiscal stimulus. For example, debt rose sharply during WWII, the Great Recession, and the COVID-19 pandemic.

But what percentage of GDP is the US debt today? Nearly equal to the entire annual economic output, raising concerns about long-term fiscal resilience.

So, what is a good debt-to-GDP ratio? Economists often consider 60% or below as a sustainable benchmark for advanced economies, though this varies. The US has been well above that threshold since 2010, signaling structural imbalances that may require policy action.

US national debt per person

How much is the national debt per person?

• The US national debt per person is $104,599 at current prices.

While the total US national debt offers a big-picture view of the country’s financial obligations, the debt per person metric reveals how much of this burden falls on each citizen.

Data taken from: Countryeconomy.Com – https://countryeconomy.com/national-debt/usa⁷

• In 1980, the national debt per person was just $5,188, but by 2024, it had ballooned to $104,599 at current prices, reflecting a 20x increase over four decades.
• The sharpest single-year spike occurred between 2019 and 2020, jumping from $70,935 to $85,100 at current prices, an increase of $14,165, largely driven by COVID-19 stimulus measures.
• Since 2020, the debt per capita has continued to grow annually by around $4,000-$7,000, highlighting sustained fiscal pressures.

The US national debt per capita, at current prices

Year	US national debt per capita, $
1980	5,188
1981	5,643
1982	6,495
1983	7,446
1984	8,484
1985	9,882
1986	10,995
1987	11,915
1988	12,921
1989	13,817
1990	14,849
1991	16,197
1992	17,489
1993	18,576
1994	19,275
1995	19,802
1996	20,455
1997	20,719
1998	20,584
1999	20,395
2000	19,339
2001	19,804
2002	21,173
2003	23,222
2004	27,654
2005	28,948
2006	29,792
2007	31,107
2008	35,742
2009	40,959
2010	46,384
2011	49,893
2012	53,444
2013	55,799
2014	57,722
2015	59,779
2016	62,142
2017	63,746
2018	67,613
2019	70,935
2020	85,100
2021	88,837
2022	92,433
2023	97,881
2024	104,599

Data taken from: Countryeconomy.Com – https://countryeconomy.com/national-debt/usa⁷

The latest figures show that the average national debt per US citizen continues to rise in tandem with the overall debt trajectory. As of 2024, the national debt per person exceeds $100,000, illustrating how the burden of federal borrowing translates on an individual level.

Understanding how much the US debt is per person provides a clearer picture of the debt’s scale: for every American, the share has grown substantially over the past two decades. Tracking US national debt per person by year reveals a steep acceleration since 2008, with new milestones reached after major economic disruptions.

What is the US debt ceiling, and why does it matter?

The US debt ceiling is a legal limit set by Congress on how much money the federal government can borrow to meet its existing financial obligations. In simple terms, it caps the total amount of government debt the US Treasury can issue. But why is the debt ceiling important? Hitting this limit without congressional action can trigger a default, risking severe economic consequences both domestically and globally.

Data taken from: Statista – https://www.statista.com/statistics/246405/federal-debt-limit-of-the-united-states/⁶

What is the debt ceiling right now?

• The US debt ceiling is $41.1 trillion.

The US debt ceiling over the years

Year	Debt amount, $ trillion	Debt ceiling, $ trillion
1983	1.4	1.4
1984	1.6	1.5
1985	1.8	2.1
1986	2.1	2.3
1987	2.4	2.8
1988	2.6	2.8
1989	2.9	3.1
1990	3.2	4.1
1991	3.7	4.1
1992	4.1	4.1
1993	4.4	4.4
1994	4.7	4.4
1995	5.0	4.4
1996	5.2	5.5
1997	5.4	5.9
1998	5.5	5.9
1999	5.7	5.9
2000	5.7	5.9
2001	5.8	5.9
2002	6.2	6.4
2003	6.8	7.4
2004	7.4	8.2
2005	7.9	8.2
2006	8.5	8.9
2007	9.0	9.8
2008	10.0	11.3
2009	11.9	12.4
2010	13.6	14.3
2011	14.8	15.2
2012	16.1	16.4
2013	16.7	16.7
2014	17.8	17.2
2015	18.2	18.1
2016	19.6	18.1
2017	20.2	20.5
2018	21.5	20.5
2019	22.7	22
2020	26.9	22
2021	28.4	31.4
2022	30.9	31.4
2023	33.2	31.4
2024	35.5	31.4
2025	37.0	41.1

Data taken from: Statista – https://www.statista.com/statistics/246405/federal-debt-limit-of-the-united-states/⁶

The national debt ceiling has been raised dozens of times over the years. The debt ceiling history shows repeated bipartisan compromises to prevent financial crises, though often accompanied by political gridlock. Understanding this history is crucial to grasping the recurring debates around federal borrowing limits.

Ultimately, the government debt ceiling serves as a mechanism to control spending, but in practice, it has become a recurring flashpoint in fiscal policy, with real-world impacts on credit ratings, markets, and public trust in US economic governance.

As the size of the US national debt continues to climb, the cost of maintaining that debt has become a central issue in fiscal discussions.

How much does the US pay in interest on its debt?

What is the interest rate on the national debt?

• The average interest rate on the US national debt in 2024 was 3.32%. 

The US debt interest payments by year

One of the most immediate consequences of rising government borrowing is the growing amount the US must pay in interest each year. This chart tracks the US debt interest cost from 2017 to 2025, reflecting both increases in borrowing and changes in interest rates. These national debt interest payments are now consuming a larger share of the federal budget than ever before.

Data taken from: Peterson Foundation – https://www.pgpf.org/programs-and-projects/fiscal-policy/monthly-interest-tracker-national-debt/¹¹

• In 2017, the interest on national debt totaled $263 billion; by 2023, it had risen to $658 billion.
• The biggest year-over-year increase occurred between 2022 and 2023, when net interest jumped by $182 billion.
• By 2025, the projected US debt interest cost is expected to reach $952 billion, nearly quadrupling the 2017 figure.

The US interest payments on debt

Year	Net interest costs, $ billion
2017	263
2018	325
2019	375
2020	345
2021	352
2022	476
2023	658
2024	881
2025	952

Data taken from: Peterson Foundation – https://www.pgpf.org/programs-and-projects/fiscal-policy/monthly-interest-tracker-national-debt/¹¹

How much money does the US Treasury Department pay as interest on its debt?

• During the 2024 FY, US federal debt interest expenses were $1.133 trillion

Thus, the US government is paying $1 trillion a year in interest on its debt. The federal government pays less net interest because it is offset by interest income it collects through the trust funds it operates and other sources.

How much did the federal government pay out in 2024?

• The US debt service costs in 2024 were $900 billion.

The data on the US debt interest payments by year numbers underscore how rising interest rates and ballooning federal borrowing amplify the financial burden on the US government. As the US debt price grows, more public funds are diverted from essential services to cover interest obligations. Without structural reforms or fiscal restraint, national debt interest payments are poised to become one of the largest recurring expenses in the federal budget. This trend not only limits policy flexibility but also heightens the long-term risks associated with sustaining high levels of public debt.

In 2025, the US debt interest payments as a percentage of GDP reached a notable threshold, totaling approximately 3.6% of the national economy. 

• The US debt interest payments as a percentage of GDP are 3.6%.

With the US GDP at $26.5 trillion and net interest costs hitting $952 billion, the growing burden of servicing debt highlights increasing pressure on the federal budget.

• The US debt interest payments per day are $2.6 billion.

This marks one of the highest proportions in recent decades, raising concerns about long-term fiscal sustainability and the government’s ability to fund essential programs without expanding borrowing even further.

While discussions often focus on the size of the US national debt, it’s equally important to understand who holds US debt. The composition of debt holders reveals key dynamics of fiscal policy and global financial interdependence.

Who owns the US debt?

The US national debt structure

The US national debt is divided among a variety of holders, ranging from domestic government entities to foreign governments and private institutions. Understanding the structure helps clarify the influence of internal versus external stakeholders in American fiscal affairs.

Data taken from: Visual Capitalist – https://www.visualcapitalist.com/charted-heres-who-owns-u-s-debt/¹²

How much debt does the Federal Reserve hold?

• The US national debt held by the Federal Reserve is 15% of the amount of debt held by public holders.
• Intragovernmental debt accounts for the largest share of the national debt structure, totaling 20% of the total.

The structure of the US national debt reflects a balanced mix of domestic and international holders. Intragovernmental holdings and US savings bonds show strong internal financing mechanisms, while the presence of major foreign creditors highlights America’s global financial ties. This layered composition adds both stability and vulnerability to US debt policy, depending on geopolitical and market conditions.

The US national debt holders

As discussions around fiscal policy intensify, understanding who owns the national debt is key to grasping broader economic dynamics. This section breaks down the various holders of US federal debt, offering a closer look at both domestic and foreign stakeholders.

The table below shows a detailed breakdown of who owns the US federal debt held by the public, which totals $28.9 trillion. It distinguishes between domestic entities, such as the Federal Reserve, mutual funds, and pension systems, and overseas holders like Japan and China. It also includes intragovernmental debt, which accounts for a significant share of the total.

Holder	Category	Amount as of 2023	Share	Type
Federal Reserve System	Public Debt	$5.2T	15%	Domestic
Mutual Funds	Public Debt	$3.7T	11%	Domestic
Depository Institutions	Public Debt	$1.6T	5%	Domestic
State and Local Governments	Public Debt	$1.7T	5%	Domestic
Pension Funds	Public Debt	$1.0T	3%	Domestic
Insurance Companies	Public Debt	$0.5T	1%	Domestic
US Savings Bonds	Public Debt	$5.7T	17%	Domestic
Japan	Public Debt	$1.1T	3%	Overseas
China	Public Debt	$0.8T	2%	Overseas
United Kingdom	Public Debt	$0.7T	2%	Overseas
Other Countries	Public Debt	$5.3T	15%	Overseas
Intragovernmental Debt	Intragovernmental Debt	$7.0T	20%	Domestic

Data taken from: Visual Capitalist – https://www.visualcapitalist.com/charted-heres-who-owns-u-s-debt/¹²

• US federal debt held by the public is $28.9 trillion.
• The Federal Reserve holds $5.2 trillion, making up 15% of the US federal debt held by the public.
• US savings bonds represent $5.7 trillion, or 17%, the largest single domestic category.
• Foreign countries collectively hold $7.9 trillion, with Japan being the top foreign holder at $1.1 trillion.

The question “how much does the US owe in national debt” leads to a complex picture. While the total debt is massive, the distribution shows a diverse range of holders, with domestic institutions still dominating. Notably, how much debt the Federal Reserve holds is a recurring concern in financial debates; at 15%, the Fed’s role remains highly influential. Foreign ownership, though significant, is more dispersed, highlighting the global interconnectedness of US debt markets.

Conclusions

• In July 2025, the U.S. national debt surpassed $37 trillion, an all-time high that reflects not only emergency responses to crises like COVID-19 but also long-standing structural deficits and bipartisan unwillingness to curb spending or raise sufficient revenues. This rising debt burden is no longer just a future concern; it’s a present-day economic constraint.
• The gross debt-to-GDP ratio has climbed to 140%, meaning the U.S. owes far more than it produces annually. This imbalance raises serious questions about long-term fiscal sustainability, creditworthiness, and the government’s capacity to respond to future economic shocks without triggering inflation or undermining investor confidence.
• With annual interest payments projected to reach $952 billion in 2025, nearly 3.6% of GDP, servicing the debt is rapidly becoming one of the largest federal expenditures. This diverts public funds away from critical areas such as education, healthcare, and infrastructure, reducing the government’s fiscal flexibility in addressing social and economic needs.
• The average national debt per citizen has reached $104,599, a staggering increase from under $6,000 in 1980 (at current prices). This steep rise reflects a shift in fiscal responsibility from collective national management to the individual taxpayer, exacerbating concerns about intergenerational equity and economic opportunity for younger Americans.
• Despite foreign countries holding nearly $8 trillion in U.S. debt, led by Japan and China, the majority is still domestically held. However, growing international exposure means that geopolitical tensions or global market instability could directly impact the cost and sustainability of U.S. borrowing.
• Ultimately, the story of U.S. national debt is not just about large numbers; it’s about long-term trade-offs. As the federal government continues to borrow at historic levels, the risks compound: slower economic growth, rising inequality, limited policy options, and the potential erosion of global trust in America’s financial leadership.

Sources

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