According to the latest financial summary from the U.S. Treasury Department, the public debt of the United States reached a historic high at the end of 2023, totaling over $34.001 trillion. This figure surpasses previous estimates and highlights the growing fiscal burden facing the country.
The report, released after the market closed, reveals that the U.S. public debt, which counts towards the federal debt ceiling, has risen to $33.89 trillion. This increase is attributed to the rising federal government deficit, driven by decreasing tax revenues and increased federal spending.
This development arrives at a critical time as Congress prepares for another round of discussions on government expenditures and funding. With the presidential and congressional elections approaching in November, reaching a compromise is expected to be more challenging.
The U.S. national debt crossed the $34 trillion threshold several years earlier than initially projected before the COVID-19 pandemic. This surge is particularly concerning given that the Congressional Budget Office had anticipated the gross federal debt to exceed this mark only in the fiscal year 2029.
Foreign holders of U.S. debt, including China, Japan, South Korea, and European states, have reduced the amount of U.S. Treasury bonds they hold. Analysis by the Peterson Foundation shows that the share of U.S. debt held by foreign investors dropped from a peak of 49% in 2011 to 30% at the end of the year.
This trend raises concerns about the increased risk to the American economy and poses questions about the long-term sustainability of the national debt and its impact on future generations.