By 2034, the gross federal debt of the United States is projected to be about 54.39 trillion U.S. dollars. This would be an increase of around 21 trillion U.S. dollars from 2023, when the federal debt was around 33 trillion U.S. dollars.
The federal debt of the U.S.
The federal debt, also called the national debt or public debt, is the amount of debt held by the United States government. This debt may be to other countries, or to different departments within the government itself. The public debt of the United States has increased significantly over the past 30 years, as it was around 3.2 trillion U.S. dollars in 1990 and surpassed 30 trillion dollars for the first time in 2022. When broken down per capita, the national debt amounted to about 80,885 U.S. dollars of debt per person in the United States in 2021.
The problem of the federal debt
Over the past decade, the federal debt limit in the United States has increased significantly. The U.S. debt ceiling can only be changed by an act of Congress which is then signed by the president. The raising of the ceiling has become a recurring political issue in recent years, especially during times when the Presidency and chambers of Congress are controlled by different parties.
The debt ceiling is a tool that allows the Treasury to issue bonds without congressional approval, allowing for efficiency in the way that the government pays for programs and services. It is thought to be further valuable in that it keeps federal finances in check. However, when the two parties are unable to come to an agreement on raising the debt ceiling, the government comes to a shutdown because they can no longer fund themselves. The Republican Party in particular often positions itself against raising the federal debt ceiling, characterizing themselves as the party of fiscal conservativism. However, analyses have shown that both parties have contributed to the country's debt in almost equal measures.
FAQs
By 2034, the gross federal debt of the United States is projected to be about 54.39 trillion U.S. dollars. This would be an increase of around 21 trillion U.S. dollars from 2023, when the federal debt was around 33 trillion U.S. dollars.
How much debt will the US be in 2050? ›
Without changes in fiscal policy, we project that the debt-to-GDP ratio will grow from 100 percent in 2024 to 190 percent in 2050. Contrary to conventional thinking, there exists a wide range of policy options that can reduce the growth of debt while growing the economy.
What is the projected national debt in 2024? ›
U.S. publicly held debt 2013-2024
In March 2024, the public debt of the United States was around 34.59 trillion U.S. dollars, almost two trillion more than in July when it was around 32.6 trillion U.S. dollars.
What is the projection for the United States debt? ›
The Congressional Budget Office warned in its latest projections that US federal government debt is on a path from 97% of GDP last year to 116% by 2034 — higher even than in World War II. The actual outlook is likely worse.
What is the debt outlook for the United States? ›
The Federal Budget
Debt held by the public, boosted by the large deficits, reaches its highest level ever in 2029 (measured as a percentage of GDP) and then continues to grow, reaching 166 percent of GDP in 2054 and remaining on track to increase thereafter.
At what point is US debt unsustainable? ›
US debt will become unsustainable and trigger default in about 20 years, if it stays on current path. US debt will become unsustainable in roughly 20 years if it doesn't change course, a Penn Wharton Budget Model determined.
Which country has the highest debt? ›
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023.
How much debt is Russia in? ›
In the latest reports, Russia National Government Debt reached 281.6 USD bn in Feb 2024. The country's Nominal GDP reached 494.7 USD bn in Mar 2023.
How much debt will the US be in 10 years? ›
The Congressional Budget Office cited an aging population and health care costs. The federal government's record-high national debt is set to get even bigger, reaching a massive $54 trillion by the year 2034.
Why is America in so much debt? ›
One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues. To pay that deficit, the government borrows money.
The national debt is now higher than it's ever been before, according to the Treasury Department, and spiked following the government's response to the pandemic, Gillum said, rising from $22.7 trillion in 2019 to over $30 trillion in 2022. There's also no plan in place to fix it.
How bad is our national debt? ›
Currently the nation's $34 trillion debt is approximately 99% of GDP and, according to the CBO, will steadily increase over the next 30 years. In the near term, the CBO expects debt as a percentage of GDP to exceed the record peak of the Second World War by 2029.
Who do we owe the US debt to? ›
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
Who does the US owe the most money to? ›
In total, other territories hold about $7.4 trillion in U.S. debt. Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion. In isolation, this $7.4 trillion amount is a lot, said Scott Morris, a senior fellow at the Center for Global Development.
What will be the US economy in 2050? ›
In 2050, assuming the region follows the 1.5 percent average growth rate of its four largest countries, real U.S. dollar GDP will increase to $25.8 trillion, placing it among the three largest economies in the world.
What will the US debt be in 2030? ›
The US and China — the two largest economies, accounting for almost half of global GDP — could see their debt-to-GDP increase to 269% and 295% in 2030, from 254% and 283% in 2023, respectively. We project corporate and government leverage to increase four times faster than household leverage.
Is the US $30 trillion in debt? ›
The infographic below offers different ways of looking at the debt and its relationship to the economy, the budget, and American families. The $34 trillion gross federal debt includes debt held by the public as well as debt held by federal trust funds and other government accounts.
