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{{Short description|
{{update|discoveries since 2018; date=January 2018|date=March 2020}}
{{Use mdy dates|date=August 2011}}
[[File:Federal debt to revenue ratio.webp|thumb|350px|Federal debt to revenue [[Financial ratio|ratio]] <br>The
[[File:National debt of the United States.webp|thumb|350px|{{center|'''National debt of the United States'''}}
{{legend|#FEE168|[[Intragovernmental holdings]]|outline=#FFD932}}
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]]
{{U.S. deficit and debt topics|expanded=dimensions}}
[[File:Average Interest Rate on U.S. Federal Debt.webp|thumb|262px|Average interest rate on U.S.
The '''national debt of the United States''' is the total [[government debt|national debt]] owed by the [[federal government of the United States|federal government]] of the [[United States]] to [[United States Treasury security|Treasury security]] holders. The national debt at any point in time is the [[face value]] of the then-outstanding Treasury securities that have been issued by the [[United States Department of the Treasury|Treasury]] and other [[List of federal agencies in the United States|federal agencies]]. 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]]. In a deficit year the national debt increases as the government needs to borrow funds to [[Deficit spending|finance the deficit]], while in a surplus year the debt decreases as more money is received than spent, enabling the government to [[Deficit reduction in the United States|reduce the debt]] by buying back some Treasury securities. In general, government debt increases as a result of [[Government spending in the United States|government spending]] and decreases from [[Taxation in the United States|tax]] or other receipts, both of which fluctuate during the course of a [[fiscal year]].<ref>{{cite web |title=Historical Tables – Table 1.2 – Summary of Receipts, Outlays, and Surpluses or Deficits (-) as Percentages of GDP: 1930–2017 |url=https://obamawhitehouse.archives.gov/sites/default/files/omb/budget/fy2013/assets/hist.pdf|access-date=April 16, 2012 |publisher=[[Office of Management and Budget]] |df=mdy-all}}</ref> There are two components of gross national debt:<ref>{{cite web |url=http://www.gao.gov/special.pubs/longterm/debt/debtbasics.html#largefeddebt |title=Federal debt basics – How large is the federal debt? |publisher=[[Government Accountability Office]] |access-date=April 28, 2012 |archive-date=July 6, 2011 |archive-url=https://web.archive.org/web/20110706055255/http://www.gao.gov/special.pubs/longterm/debt/debtbasics.html#largefeddebt |url-status=dead}}</ref>
* "Debt held by the public" – such as Treasury securities held by investors outside the federal government, including those held by individuals, [[corporation]]s, the [[Federal Reserve]], and foreign, [[State governments of the United States|state]] and [[Local government in the United States|local governments]].
* "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 government accounts represents the cumulative surpluses, including interest earnings, of various government programs that have been invested in Treasury securities.
[[File:US Federal Debt Held By Public as of Feb. 2023.png|thumb|upright=1.2|The amount of U.S. public debt, measured as a percentage of GDP, held by the public since 1900]]
Historically, the U.S. public debt as a share of [[gross domestic product]] (GDP) increases during wars and [[recession]]s and then subsequently declines. The [[Debt-to-GDP ratio|ratio of debt to GDP]] may decrease as a result of a government surplus or via [[Economic growth|growth of GDP]] and [[inflation]]. The [[Congressional Budget Office]] (CBO) estimated in February 2024 that Federal debt held by the public is projected to rise from 99 percent of GDP in 2024 to 116 percent in 2034, and would continue to grow if current laws generally remained unchanged. Over that period, the growth of interest costs and mandatory spending outpaces the growth of revenues and the economy, driving up debt. Those factors persist beyond 2034, pushing federal debt higher still, to 172 percent of GDP in 2054.<ref name="CBO_budgetOutlook2024">{{cite web|url=https://www.cbo.gov/publication/59710|title=The Budget and Economic Outlook: 2024 to 2034|publisher=CBO|date=February 7, 2024|access-date=February 7, 2024}}</ref> In recent decades, aging [[Demographics of the United States|demographics]] and rising [[Health care prices in the United States|healthcare costs]] have led to concern about the long-term sustainability of the federal government's [[Fiscal policy of the United States|fiscal policies]].<ref>{{Cite web |date=2022-07-27 |title=The 2022 Long-Term Budget Outlook |url=https://www.cbo.gov/publication/57971 |access-date=2022-09-30 |publisher=Congressional Budget Office |language=en}}</ref> The aggregate, gross amount that Treasury can borrow is limited by the [[United States debt ceiling]].<ref>About 0.8% of debt ($1009 billion) is not covered by the ceiling, per [https://fpc.state.gov/documents/organization/105193.pdf The Debt Limit: History and Recent Increases, p. 4. (Note: This includes pre-1917 debt)], fpc.state.gov; accessed August 22, 2016.</ref>
Total US federal government debt breached $30 trillion mark for the first time in history in February 2022.<ref>{{Cite news |last=Rappeport |first=Alan |date=2022-02-01 |title=U.S. National Debt Tops $30 Trillion as Borrowing Surged Amid Pandemic |language=en-US |work=[[The New York Times]] |url=https://www.nytimes.com/2022/02/01/us/politics/national-debt-30-trillion.html |access-date=2022-02-02 |issn=0362-4331}}</ref> As of
During the [[COVID-19 pandemic in the United States|COVID-19 pandemic]], the [[U.S. federal government response to the COVID-19 pandemic|federal government spent trillions]] in virus aid and economic relief. The [[Congressional Budget Office
[[File:Debt to GDP.webp|thumb|350px|Debt to GDP
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{{legend|#EE220C|[[Federal government of the United States|Federal]] debt to GDP}}
]]
[[File:
==History==
{{Main|History of the United States public debt}}
The [[United States federal government]] has continuously had a fluctuating [[Government debt|public debt]] since its formation in 1789, except for about a year during 1835–1836, a period in which the nation, during the presidency of [[Andrew Jackson]], completely paid the national debt. To allow comparisons over the years, public debt is often expressed as a ratio to [[GDP]]. The United States public debt as a percentage of GDP reached its highest level during [[Harry S. Truman|Harry Truman]]'s first presidential term, during and after [[World War II]]. Public debt as a percentage of GDP fell rapidly in the [[Post–World War II economic expansion|post-World War II period]] and reached a low in 1974 under [[Richard Nixon]]. Debt as a share of GDP has consistently increased since then, except during the presidencies of [[Jimmy Carter]] and [[Bill Clinton]].
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The national debt can also be classified into marketable or non-marketable securities. Most of the marketable securities are [[United States Treasury security|Treasury notes, bills, and bonds]] held by investors and governments globally. The non-marketable securities are mainly the "government account series" owed to certain government trust funds such as the Social Security Trust Fund, which represented $2.82 trillion (~${{Format price|{{Inflation|index=US-GDP|value=2820000000000|start_year=2017}}}} in {{Inflation/year|US-GDP}}) in 2017.<ref>{{cite web|url=http://www.ssa.gov/oact/tr/2012/tr2012.pdf |title=The 2012 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds |website=Ssa.gov |access-date=2016-08-27}}</ref>
The non-marketable securities represent amounts owed to program beneficiaries. For example, in the cash upon receipt but spent for other purposes.{{sentence fragment|date=February 2023}} If the government continues to run deficits in other parts of the budget, the government will have to issue debt held by the public to fund the Social Security Trust Fund, in effect exchanging one type of debt for the other.<ref>{{cite web|url=http://www.ssa.gov/oact/trsum/index.html|title=Social Security Trust Fund 2010 Report Summary|publisher=Ssa.gov|access-date=May 18, 2011}}</ref>{{failed verification|reason=These assertions could not be located in the 268-page report.|date=February 2023}}{{dubious|reason=The "deficits" discussed in the source appear to be Social Security operating deficits, not federal budget deficits.|date=February 2023}} Other large intragovernmental holders include the Federal Housing Administration, the [[Federal Savings and Loan Insurance Corporation|Federal Savings and Loan Corporation's]] Resolution Fund and the Federal Hospital Insurance Trust Fund (Medicare).{{citation needed|date=August 2016}}
===Accounting treatment===
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===Foreign holdings===
[[File:Composition of U.S. Long-Term Treasury Debt 2000-2014.svg|thumb
[[File:MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES.webp|thumb|right|290px|Foreign holders of Treasury Securities <br> April 2021 - April 2022]]
As of October 2018, foreigners owned $6.2 trillion of U.S. debt, or approximately 39% of the debt held by the public of $16.1 trillion and 28% of the total debt of $21.8 trillion.<ref>{{cite web|url=http://www.treasurydirect.gov/govt/reports/pd/mspd/2014/opds092014.pdf|title=Treasury Direct-Monthly Statement of the Public Debt Held by the U.S.|date=September 2014|access-date=November 30, 2014}}</ref> In December 2020, foreigners held 33% ($7 trillion out of $21.6 trillion) of publicly held US debt; of this $7 trillion, $4.1 trillion (59.2%) belonged to foreign governments and $2.8 trillion (40.8%) to foreign investors. Including both private and public debt holders, the top three December 2020 national holders of American public debt are [[Japan]] ($1.2 trillion or 17.7%), [[China]] ($1.1 trillion or 15.2%), and the [[United Kingdom]] ($0.4 trillion or 6.2%).<ref>{{cite report |author2=Jared C. Nagel |author1=Marc Labonte |date=July 9, 2021 |title=Foreign Holdings of Federal Debt |url=https://fas.org/sgp/crs/misc/RS22331.pdf |publisher=[[Congressional Research Service]] |page=ii |access-date=July 21, 2021}}</ref>
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=== Raising reserve requirements and full reserve banking ===
Two economists, Jaromir Benes and Michael Kumhof, working for the [[International Monetary Fund]], published a working paper called ''[[Chicago plan|The Chicago Plan Revisited]]'' suggesting that the debt could be eliminated by raising bank [[reserve requirement]]s and converting from [[fractional-reserve banking]] to [[full-reserve banking]].<ref>Ambrose Evans-Pritchard (October 21, 2012) [https://www.telegraph.co.uk/finance/comment/9623863/IMFs-epic-plan-to-conjure-away-debt-and-dethrone-bankers.html "IMF's epic plan to conjure away debt and dethrone bankers"] ''[[The Daily Telegraph|The Telegraph]]''</ref><ref>Jaromir Benes and Michael Kumhof (August 2012) [http://www.imf.org/external/pubs/ft/wp/2012/wp12202.pdf "The Chicago Plan Revisited"], International Monetary Fund working paper WP/12/202; accessed November 6, 2016.</ref> Economists at the [[Paris School of Economics]] have commented on the plan, stating that it is already the ''status quo'' for coinage currency,<ref>[http://hal.cirad.fr/docs/00/74/79/04/PDF/12064.pdf "Debt-Deflation versus the Liquidity Trap: the Dilemma of Nonconventional Monetary Policy"] ''CNRS, CES, Paris School of Economics, ESCP-Europe'', October 23, 2012</ref> and a [[Norges Bank]] economist has examined the proposal in the context of considering the [[Financial services|finance industry]] as part of the [[real economy]].<ref>{{Cite web
==Risks and debates==
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]]
[[File:U.S. Federal Net Interest as Pct GDP.png|thumb|right|upright=1.35|Interest to GDP, a measure of debt burden, was very low in 2015 but is projected to rise with both interest rates and debt levels over the 2016–2026 period.]]
[[File:2023 Interest
Interest expense on the public debt was approximately $678 billion in FY2023. During FY2023, the government also accrued a non-cash interest expense of $197 billion for intra-governmental debt, primarily the Social Security Trust Fund, for a total interest expense of $875 billion. This accrued interest is added to the Social Security Trust Fund and therefore the national debt each year and will be paid to Social Security recipients in the future. However, since it is a non-cash expense it is excluded from the budget deficit calculation.<ref name="GAO 2023 Report">{{cite web |url=https://www.gao.gov/assets/d24106340.pdff |title=GAO FINANCIAL AUDIT Bureau of the Fiscal Service's FY 2023 and FY 2022 Schedules of Federal Debt |page=18 |date=November 2023 |access-date=2024-01-25 }}</ref>
The federal debt at the end of the 2018/19 fiscal year (ended September 30, 2019) was $22.7 trillion (~${{Format price|{{Inflation|index=US-GDP|value=22700000000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}). The portion that is held by the public was $16.8 trillion. Neither figure includes approximately $2.5 trillion owed to the government.<ref>{{Cite web|url=https://www.gao.gov/products/gao-20-117|title=Financial Audit: Bureau of the Fiscal Service's FY 2019 and FY 2018 Schedules of Federal Debt|first=U. S. Government Accountability|last=Office|website=www.gao.gov}}</ref> Interest on the debt was $404 billion.<ref>https://www.gao.gov/assets/710/702591.pdf, https://www.gao.gov/assets/710/704983.pdf</ref>
The cost of servicing the U.S. national debt can be measured in various ways. The CBO analyzes net interest as a percentage of GDP, with a higher percentage indicating a higher interest payment burden. During 2015, this was 1.3% GDP, close to the record low 1.2% of the 1966–1968 era. The average from 1966 to 2015 was 2.0% of GDP.<ref>[https://www.cbo.gov/publication/51384 CBO-Updated Budget Projections 2016–2026], cbo.gov; retrieved May 11, 2016.</ref> However, the CBO estimated in 2016 that the interest amounts and % GDP will increase significantly over the following decade as both interest rates and debt levels rise: "Interest payments on that debt represent a large and rapidly growing expense of the federal government. CBO's baseline shows net interest payments more than tripling under current law, climbing from $231 billion in 2014, or 1.3% of GDP, to $799 billion in 2024, or 3.0% of GDP—the highest ratio since 1996."<ref>[https://www.cbo.gov/publication/45684 CBO-Projection of Federal Interest Payments], cbo.gov, September 3, 2014.</ref>
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In October 2023, yields for 10-year [[United States Treasury security#Treasury note|Treasury notes]] breached 5% as traders adjusted their assessment of United States' fiscal position and lowered their expectation that Congress or the White House would take any action to improve it. The impact was felt by homebuyers, with 30-year mortgage rate at its highest in two decades, and corporations facing higher costs of borrowing. Interests paid by the federal government jumped by $184 billion during the 2022 fiscal year and are still climbing.<ref>{{Cite news |date=2023-10-23 |title=Why Bond Yields Are Sending a Warning Signal to Washington |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/newsletters/2023-10-23/with-us-debt-piling-up-bond-market-is-sending-a-warning-signal |access-date=2023-10-26}}</ref>
==== Recent US debt service/interest statistics ====
{| class="wikitable sortable"
!FY
![[Government Accountability Office|GAO]]: (Total) Debt Service (in billion dollars)
![[Federal Reserve Economic Data|FRED]]: (Total) Debt Service (in billion dollars)[https://fred.stlouisfed.org/graph/?g=ViPH]
![[Government Accountability Office|GAO]]: (Publicly-held) Debt Service (in billion dollars)
![[Federal Reserve Economic Data|FRED]]: Fed Receipts (in billion dollars)[https://fred.stlouisfed.org/graph/?g=ViPI]
![[Federal Reserve Economic Data|FRED]]: Debt Service/Receipts
|-
|2023
|875.5<ref name=gao23>{{Cite web|title=Financial Audit: Bureau of the Fiscal Service's FY 2023 and FY 2022 Schedules of Federal Debt|url=https://www.gao.gov/assets/d24106340.pdf|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2023-11-09}}</ref>
|981<ref name=fred23>{{cite web|url=https://fred.stlouisfed.org/release/tables?rid=53&eid=5272&od=2023-07-01#|title=Table 3.2. Federal Government Current Receipts and Expenditures|access-date=2024-04-15|website=[[Federal Reserve Economic Data|FRED]]|date=2023}}</ref>
|678<ref name=gao23/>
|4439
|{{Round| {{#expr:100*981/4439}} |0}}%
|-
|2022
|723.6<ref name=gao23/>
|829.6
|496.5<ref name=gao23/>
|4896
|{{Round| {{#expr:100*829.6/4896}} |0}}%
|-
|2021
|575<ref name=gao22>{{Cite web|title=Financial Audit: Bureau of the Fiscal Service's FY 2022 and FY 2021 Schedules of Federal Debt|url=https://www.gao.gov/products/gao-23-105586|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2022-11-09}}</ref>
|612
|392<ref name=gao21>{{Cite web|title=Financial Audit: Bureau of the Fiscal Service's FY 2021 and FY 2020 Schedules of Federal Debt|url=https://www.gao.gov/assets/gao-22-104592.pdf|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2021-11-09}}</ref>
|4047
|{{Round| {{#expr:100*612/4047}} |0}}%
|-
|2020
|527<ref name=gao21/>
|517.7
|371<ref name=gao21/><ref name=gao20>{{cite web|url=https://www.gao.gov/products/gao-21-124|title=Financial Audit: Bureau of the Fiscal Service's FY 2020 and FY 2019 Schedules of Federal Debt|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2020-11-09}}</ref>
|3421
|{{Round| {{#expr:100*517.7/3421}} |0}}%
|-
|2019
|574<ref name=gao20/>
|564.5
|404<ref name=gao20/>
|3463
|{{Round| {{#expr:100*564.5/3463}} |0}}%
|-
|2018
|528.4<ref name=gao18>{{cite web|url=https://www.gao.gov/assets/gao-19-113.pdf|title=Financial Audit: Bureau of the Fiscal Service's FY 2018 and FY 2017 Schedules of Federal Debt|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2019-11-09}}</ref>
|571
|357<ref name=gao18/>
|3330
|{{Round| {{#expr:100*571/3330}} |0}}%
|-
|2017
|456.7<ref name=gao18/>
|493
|296<ref name=gao18/>
|3316
|{{Round| {{#expr:100*493/3316}} |0}}%
|-
|2016
|430<ref name=gao16>{{cite web|url=https://www.gao.gov/assets/gao-17-104.pdf|title=Financial Audit: Bureau of the Fiscal Service's FY 2016 and FY 2015 Schedules of Federal Debt|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2017-11-09}}</ref>
|460
|273<ref name=gao16/>
|3268
|{{Round| {{#expr:100*460/3268}} |0}}%
|-
|2015
|407<ref name=gao16/>
|434.7
|251<ref name=gao16/>
|3250
|{{Round| {{#expr:100*434.7/3250}} |0}}%
|-
|2014
|433<ref name=gao14>{{cite web|url=https://www.gao.gov/assets/gao-15-157.pdf|title=Financial Audit: Bureau of the Fiscal Service's FY 2014 and FY 2013 Schedules of Federal Debt|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2015-11-09}}</ref>
|442
|260<ref name=gao14/>
|3021
|{{Round| {{#expr:100*442/3021}} |0}}%
|-
|2013
|425<ref name=gao14/>
|425
|247.6<ref name=gao14/>
|2775
|{{Round| {{#expr:100*425/2775}} |0}}%
|-
|2012
|432<ref name=gao12>{{cite web|url=https://www.gao.gov/assets/gao-13-114.pdf|title=Financial Audit: Bureau of the Fiscal Service's FY 2012 and FY 2011 Schedules of Federal Debt|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2013-11-09}}</ref>
|417
|245.4<ref name=gao12/>
|2450
|{{Round| {{#expr:100*417/2450}} |0}}%
|-
|2011
|453.6<ref name=gao12/>
|433
|250.9<ref name=gao12/>
|2303
|{{Round| {{#expr:100*433/2303}} |0}}%
|-
|2010
|413<ref name=gao10>{{cite web|url=https://www.gao.gov/assets/gao-11-52.pdf|title=Financial Audit: Bureau of the Fiscal Service's FY 2010 and FY 2009 Schedules of Federal Debt|access-date=2024-01-20|website=[[Government Accountability Office]]|language=en|date=2011-11-09}}</ref>
|399.5
|215<ref name=gao10/>
|2162.7
|{{Round| {{#expr:100*399.5/2162.7}} |0}}%
|-
|2009
|380.7<ref name=gao10/>
|353.8
|189<ref name=gao10/>
|2105
|{{Round| {{#expr:100*353.8/2105}} |0}}%
|}
===Chinese holdings of U.S. debt===
According to a 2013 [[Forbes]] article, many American and other [[Financial analyst|economic analysts]] have expressed concerns on the amount of United States government debt the People's Republic of China is holding as part of their reserves.<ref>[https://www.forbes.com/sites/kenrapoza/2013/01/23/is-chinas-ownership-of-u-s-debt-a-national-security-threat/#41479958afa3 "Is China's Ownership Of U.S. Debt A National Security Threat?"] by Kenneth Rapoza, ''[[Forbes]]'', 23 January 2013</ref><ref name="cnn">"... Should Americans be concerned that China has started dumping some of its Treasury holdings? After all, it raises serious questions about whether China will keep lending Washington money to help finance the federal deficit in the future.": From [https://money.cnn.com/2015/09/10/investing/china-dumping-us-debt "China is dumping U.S. debt"], CNN.com, September 11, 2015.</ref>
A 2010 article by [[James K. Galbraith]] in ''[[The Nation]]'', defends deficits and dismisses concerns over foreign holdings of United States government debt denominated in U.S. dollars, including China's holdings.<ref name="james">: "... What about indebtedness to foreigners? ... To acquire [U.S. gov't bonds], China must export goods to us, not offset by equivalent imports. That is a cost to China. It's a cost [[Government of China|Beijing]] is prepared to pay, for its own reasons: export industries promote learning, technology transfer and product quality improvement, and they provide jobs to migrants from the countryside. But that's China's business. For China, the bonds themselves are a sterile [[hoard]]. There is almost nothing that Beijing can do with them; ... its stock of T-bonds will just go on growing. And we will pay interest on it, not with real effort but by typing numbers into computers. There is no burden associated with this; not now and not later." From [http://www.thenation.com/article/defense-deficits/ "In Defense of Deficits"] by [[James K. Galbraith]], ''[[The Nation]]'', March 4, 2010.</ref> In 2010, [[Warren Mosler]], wrote that "When[ever] the Chinese redeem those T-securities, the money is transferred back to China's checking account at the Fed. During the entire purchase and redemption process, the dollars never leave the Fed."<ref name="mosler">"... The Chinese buy U.S. T-securities by transferring U.S. dollars (not yuan) from their checking account at the Federal Reserve Bank to China's T-security account, also at the Federal Reserve Bank. When[ever] the Chinese redeem those T-securities, the money is transferred back to China's checking account at the Fed. During the entire purchase and redemption process, the dollars never leave the Fed." [http://moslereconomics.com/2010/09/23/what-policies-for-global-prosperity/ "What Policies for Global Prosperity?"] by [[Warren Mosler]], September 23, 2010.</ref> Australian economist [[Bill Mitchell (economist)|Bill Mitchell]] argued that the United States government had a "nearly infinite capacity...to spend."<ref name="mitchell">[[Bill Mitchell (economist)|Mitchell, Bill]], [[University of Newcastle (Australia)]]. [http://bilbo.economicoutlook.net/blog/?p=18813 "The nearly infinite capacity of the US government to spend"] (March 28, 2012); [http://bilbo.economicoutlook.net/blog/?p=25161 "The US government can buy as much of its own debt as it chooses"] (August 27, 2013)</ref> Against the backdrop of escalating Sino-U.S. tensions in 2020, Yuzo Sakai, a manager at Ueda Totan Forex Ltd., said that if China undertakes a massive sales of U.S. bonds, investors may flock to the [[Japanese yen]] as a safe-
===Definition of public debt===
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The [[COVID-19 pandemic in the United States]] impacted the economy significantly beginning in March 2020, as businesses were shut-down and furloughed or fired personnel. About 16 million persons filed for [[Unemployment benefits|unemployment insurance]] in the three weeks ending April 9. It caused the number of unemployed persons to increase significantly, which is expected to reduce tax revenues while increasing [[automatic stabilizer]] spending for unemployment insurance and [[Supplemental Nutrition Assistance Program|nutritional support]]. As a result of the adverse economic impact, both state and federal budget deficits will dramatically increase, even before considering any new legislation.<ref>{{Cite news |last1=Cohen |first1=Patricia |last2=Hsu |first2=Tiffany |date=April 9, 2020 |title='Sudden Black Hole' for the Economy With Millions More Unemployed |newspaper=[[The New York Times]] |url=https://www.nytimes.com/2020/04/09/business/economy/unemployment-claim-numbers-coronavirus.html}}</ref>
To help address lost income for millions of workers and assist businesses, Congress and President Trump enacted the [[CARES Act|Coronavirus Aid, Relief, and Economic Security Act]] (CARES Act) on March 27, 2020. It included loans and grants for businesses, along with direct payments to individuals and additional funding for unemployment insurance.
CBO provided a preliminary score for the CARES Act on April 16, 2020, estimating that it would increase federal deficits by about $1.8 trillion over the 2020-2030 period. The estimate includes:
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The [[Committee for a Responsible Federal Budget]] estimated that the budget deficit for fiscal year 2020 would increase to a record $3.8 trillion (~${{Format price|{{Inflation|index=US-GDP|value=3800000000000|start_year=2020}}}} in {{Inflation/year|US-GDP}}), or 18.7% GDP.<ref name="CRFB_CARES1">{{Cite web |title=NYT-Reuters-U.S. Deficit to Soar to Record $3.8 Trillion in 2020, Budget Watchdog Group Says-April 13, 2020 |url=https://www.nytimes.com/reuters/2020/04/13/us/13reuters-health-coronavirus-usa-budget.html |website=[[The New York Times]]}}</ref> For scale, in 2009 the budget deficit reached 9.8% GDP ($1.4 trillion nominal dollars) in the depths of the [[Great Recession]]. CBO forecast in January 2020 that the budget deficit in FY2020 would be $1.0 trillion (~${{Format price|{{Inflation|index=US-GDP|value=1000000000000|start_year=2020}}}} in {{Inflation/year|US-GDP}}), prior to considering the impact of the COVID-19 pandemic or CARES.<ref>{{Cite web |date=January 28, 2020 |title=The Budget and Economic Outlook: 2020 to 2030 | Congressional Budget Office |url=https://www.cbo.gov/publication/56020 |website=www.cbo.gov}}</ref> CFRB further estimated that the national debt would reach 106% of U.S. GDP in September 2020, a record since the aftermath of World War II.<ref>{{cite news |last1=Lynch |first1=David J. |date=18 April 2020 |title=Record government and corporate debt risks 'tipping point' after pandemic passes |language=en |newspaper=[[The Washington Post]] |url=https://www.washingtonpost.com/us-policy/2020/04/18/record-government-corporate-debt-risk-tipping-point-after-pandemic-passes/ |access-date=19 April 2020}}</ref>
[[President Biden]] also allocated significant amounts of money towards relief of the [[COVID-19 pandemic]]. According to a May 2021 report, Biden has or plans to spend $5.72 (~${{Format price|{{Inflation|index=US-GDP|value=5720000000000|start_year=2021}}}} in {{Inflation/year|US-GDP}}) trillion dollars toward this effort and others such as climate change including providing stimulus checks and serving schools and low-income children.<ref>{{cite news |last=Tankersley |first=Jim |date=April 9, 2021 |title=Biden's Budget Includes $1.52 Trillion in Federal Spending |work=[[The New York Times]] |url=https://www.nytimes.com/live/2021/04/09/us/biden-news-today}}</ref> Many economists have agreed that this unprecedented level of spending from the [[Presidency of Joe Biden|Biden Administration]] has, in part, contributed to the [[
==Appendix==
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|-
!2015
|align="right"|<sup>a14</sup> 18,138||align="right"|<sup>a</sup> 100.3%||align="right"|<ref name="gao2019"/> 13,124||align="right"| ||align="right"|18,100
|-
!2016
|style="border-bottom:1px solid black"; align="right"|<sup>a15</sup> 19,560||style="border-bottom:1px solid black"; align="right"|<sup>a</sup>105.5%||style="border-bottom:1px solid black"; align="right"|<ref name="gao2019"/> 14,173||style="border-bottom:1px solid black"; align="right"| ||style="border-bottom:1px solid black"; align="right"|18,550
|-
!2017
|align="right"|<sup>a16</sup> 20,233|| align="right" |<sup>a</sup>105.1% ||align="right"|<ref name="gao2019"/> 14,673 ||align="right"| ||align="right"|19,250
|-
!2018
|align="right"|<sup>a17</sup> 21,506||align="right"|<sup>a</sup>106.0% ||align="right"|<ref name="gao2019"/> 15,761||align="right"| ||align="right"|20,300
|-
!2019
|align="right"|<sup>a18</sup> 22,711||align="right"|<sup>a</sup>107.4% ||align="right"|<ref name="gao2019"/> 16,809||align="right"| ||align="right"|21,150
|-
!2020
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===Interest paid===
According to federal government data, interest payment on debt has crossed above one trillion on October 1, 2023.<ref>[https://fred.stlouisfed.org/graph/?g=172rZ FRED economic data]</ref><br>
Note that this is all interest the U.S. paid, including interest credited to Social Security and other government trust funds, not just "interest on debt" frequently cited elsewhere.
[[File:Federal interest payments 2023.webp|thumb|350px|Federal interest payments <br> Quarterly data annualized]]
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===Foreign holders of U.S. Treasury securities===
{{main|United States Treasury security#International}}
The following is a list of the top foreign holders <!--(
{| class=wikitable
! colspan=3|{{nowrap|Leading foreign holders of
|-
! Country or region!!{{center|Billions of<br/>dollars (est.)}}!!{{center|% change since<br/>
|-
| {{JPN}} || {{center|1,
|-
| {{CHN}} || {{center|
|-
| {{GBR}} || {{center|
|-
| {{LUX}} || {{center|
|-
| {{
|-
| {{CYM}} || {{center|
|-
| {{
|-
| {{IRL}} || {{center|
|-
| {{
|-
| {{
|-
| {{
|-
| {{
|-
| {{BRA}} || {{center|223.
|-
| {{HKG}} || {{center|
|-
| {{SGP}} || {{center|
|-
| '''other''' || {{center|
|-
! {{left|Total}} || {{center|
|}
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|}
Sources: [[Eurostat]],<ref>[http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tps00001 Eurostat – Tables, Graphs and Maps Interface (TGM) table] Retrieved April 26, 2018</ref> [[International Monetary Fund]], ''World Economic Outlook'' (emerging market economies); [[Organisation for Economic Co-operation and Development]], ''Economic Outlook'' (advanced economies),<ref>Cecchetti, Stephen G. et al. (March 2010). [http://www.bis.org/publ/work300.pdf "The future of public debt: prospects and implications"], p. 3. [[Bank for International Settlements]] [website]; retrieved July 4, 2011.</ref> [[IMF]]
'''<sup>1</sup>'''China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand
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* [[Financial position of the United States]]
* [[List of countries by public debt]]
* [[Sovereign default]]
* [[Troubled Asset Relief Program]]
|