U.S. gross debt increased from $34.4 trillion at the end of 2023 to $36.1 trillion as of December 2024, with some experts calling it unsustainable.

In this graphic, Visual Capitalist’s Bruno Venditti brings a breakdown of U.S. debt composition, categorized by domestic and foreign investors as well as intragovernmental holdings.

The data is sourced from the U.S. Department of the Treasury by the Peter G. Peterson Foundation, as of year-end for 2023.

Key Data on U.S. Debt

The U.S. national debt increases when the federal government spends more than it collects through taxes and other revenue streams.

When government spending exceeds tax revenue, a budget deficit occurs. To cover the shortfall, the U.S. Treasury issues Treasury bills, notes, and bonds. The national debt is the cumulative total of the federal government’s budget deficits, adjusted for any surpluses.

Of the $34.4 trillion in gross debt in 2023, $27.3 trillion (79%) was public debt borrowed from domestic and foreign investors, while $7.0 trillion (21%) was intragovernmental debt, reflecting internal government transactions.

The Federal Reserve System was the largest domestic holder of U.S. public debt, with holdings of $5.24 trillion.

Debt held by the public represents the amount borrowed by the U.S. Treasury from external lenders via financial markets to fund government operations. It is considered a critical measure of debt because it directly impacts the government’s ability to manage economic crises and can influence economic stability.

As of December 2023, debt held by the public equaled 97% of the U.S. GDP.

Debt Under Trump

With the upcoming administration change in January, President-elect Donald Trump has appointed billionaire Elon Musk and former presidential candidate Vivek Ramaswamy to head the newly established Department of Government Efficiency (DOGE). The department aims to identify and eliminate wasteful spending, with Musk claiming it could cut $2 trillion in government “waste,” potentially reducing the national debt or curbing expenditures.

If you enjoyed this post, make sure to check this graphic on which foreign countries own the most U.S. debt.