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Money & budgets

national debt

The total the federal government owes. Debt held by the public is money borrowed from investors; intragovernmental debt is owed to trust funds like Social Security.

In full

Economists generally focus on debt held by the public, since intragovernmental holdings are the government owing itself. Debt is usually compared to gross domestic product rather than quoted in raw dollars. The debt limit caps the total, but raising it authorizes no new spending; it permits borrowing for obligations already enacted.

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Written from U.S. Treasury, Fiscal Data

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A plain-language explanation for civic education, not legal advice. When in doubt, the official source named above controls.