The amount the government pays in interest on the national debt is a significant and growing expense in the federal budget. This figure, often referred to as “net interest,” can change based on the total amount of debt and the interest rates on the Treasury securities the government has issued. In 2024 Net Interest surpassed military spending as the 3rd largest budget item in the Federal Budget.
You can find the most current and historical data on interest payments from several official sources. The U.S. Department of the Treasury publishes monthly and annual financial statements that detail interest costs. The Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) also provide detailed data and future projections for net interest costs in their regular budget reports, such as the CBO’s Budget and Economic Outlook and the President’s annual Budget.
The debt ceiling, or debt limit, is the total amount of money that the U.S. government is legally authorized to borrow to meet its existing legal obligations. These obligations include paying for things like Social Security and Medicare benefits, military salaries, interest on the national debt, and tax refunds. Raising the debt ceiling does not authorize new spending; it simply allows the government to pay for the spending that Congress has already approved.
If the debt ceiling is not raised, the U.S. Treasury cannot issue new debt and could run out of cash to pay its bills. This could lead to a default on the nation’s obligations, which would have significant negative economic consequences. It could trigger a financial crisis, dramatically increase inflation and interest rates for consumers and businesses, and severely damage the global standing and creditworthiness of the United States and the value of the US Dollar.
The term “National Debt Commission” most often refers to the National Commission on Fiscal Responsibility and Reform, also known as the Simpson-Bowles Commission, which was created by President Obama in 2010 and ended the same year. The commission was a bipartisan group tasked with identifying policies to improve the nation’s long-term fiscal situation.
The commission produced a report with a wide range of recommendations to reduce the national debt, including changes to spending on entitlement programs and tax reform. While the commission’s specific plan was not enacted into law, its work significantly raised the public profile of the nation’s long-term debt challenges and has continued to influence the debate over fiscal policy.
The Bureau of the Fiscal Service is a bureau within the U.S. Department of the Treasury that serves as the government’s central financial agent. It plays a critical role in managing the finances of the United States by handling the collection, disbursement, and reporting of all federal money.
The Fiscal Service is responsible for collecting federal revenues like taxes and customs duties, disbursing payments for all federal agencies, and managing the financing of the national debt through the sale of Treasury securities. It also produces the official financial statements for the entire U.S. government. In short, the Bureau of the Fiscal Service acts as the bookkeeper and cashier for the federal government.
The terms “deficit” and “debt” are related but describe two different things. The federal budget deficit is the difference between the amount of money the government spends and the amount it collects in revenues in a single fiscal year. If the government spends more than it takes in, it runs a Deficit. If it takes in more than it spends, it has a Surplus. As of 2025 it has been over 20 years since the US had a Surplus.
The National Debt is the total amount of money the government owes from all past years combined. Each year’s deficit gets added to the existing debt. So, the debt is the accumulation of all past deficits, minus any past surpluses. Think of it like a credit card: a Deficit is when you spend more than you earned in a month, and the Debt is your total outstanding balance.
The Office of Management and Budget (OMB) is the primary source for comprehensive historical data on federal government spending and revenues. As part of the President’s annual Budget Request, the OMB publishes a detailed set of “Historical Tables” that provide data on the budget going back many decades.
These tables present a wide range of information, such as spending and revenues as a percentage of GDP, breakdowns of spending by category and agency, and data on deficits and the national debt. You can find and download these tables on the White House OMB website. The Congressional Budget Office (CBO) and the Treasury’s Bureau of the Fiscal Service also provide extensive historical financial data on their websites.
The primary source for daily information on the U.S. debt is the TreasuryDirect website, specifically its “Debt to the Penny” feature, which is managed by the U.S. Department of the Treasury. This site provides the most up-to-date figure for the total public debt outstanding.
For broader context, including information on the annual budget deficit (the difference between spending and revenue in a single year) and historical data, several government agencies provide excellent resources. The Treasury’s monthly and annual statements, the Congressional Budget Office’s (CBO) Budget and Economic Outlook, and the historical tables in the President’s annual Budget Request all provide comprehensive data and analysis on the federal deficit and debt.
The consolidated financial statements for the entire U.S. government are published annually in a document called the Financial Report of the United States Government. This report, which is similar to the annual 10K financial report of a large public corporation, provides a comprehensive overview of the government’s financial position and operations.
The report is prepared by the Bureau of the Fiscal Service in coordination with the Office of Management and Budget (OMB) and is audited by the Government Accountability Office (GAO). It is a key document for government transparency, providing a detailed accounting of federal assets, liabilities, revenues, and costs. You can find and download the latest and past editions of the Financial Report from the website of the Bureau of the Fiscal Service.
The National debt is owned by a wide range of individuals, institutions, and foreign governments that hold U.S. Treasury securities. It is broadly divided into two categories: debt held by the public and intragovernmental debt. “Debt held by the public” includes Treasury securities purchased by individuals, corporations, pension funds, banks, and foreign governments. It represents the money the U.S. government has borrowed from external lenders.
“Intragovernmental debt” refers to the Treasury securities held in government accounts, such as the Social Security and Medicare trust funds. When these trust funds collect more revenue than they need to pay out in benefits, the surplus is invested in special Treasury securities, essentially meaning one part of the government is lending money to another. Roughly 80% of the National Debt is held by the public, as of 8/31/25 the National Debt is approximately $37.3 Trillion dollars.
