What the National Debt Is
The national debt is the total accumulated amount the federal government owes to creditors — primarily holders of Treasury bonds, notes, and bills, including foreign governments, domestic investors, and the Federal Reserve. As of April 2026, the national debt exceeds $36 trillion, representing approximately 125 percent of annual U.S. gross domestic product.
The debt grows when the federal government spends more than it collects in revenue — a budget deficit. The United States has run budget deficits in all but four years since 1970. The annual deficit in fiscal year 2025 was approximately $1.9 trillion.
Why It Has Grown
Three structural factors drive long-term debt growth. First, mandatory spending — Social Security, Medicare, and Medicaid — consumes an increasing share of federal revenue as the population ages and healthcare costs grow. These programs are on autopilot: they spend whatever the law requires regardless of the budget situation.
Second, interest payments on existing debt are themselves a growing budget line item. At $36 trillion in debt and current interest rates, annual interest payments exceed $1 trillion — more than the entire defense budget.
Third, discretionary spending — defense, education, transportation, and other annually appropriated programs — has grown over time even as it has declined as a share of total spending.
The Conservative Reform Proposals
Conservative deficit reduction proposals focus on four areas: entitlement reform (slowing the growth rate of Social Security and Medicare through means-testing, retirement age adjustments, and market-based Medicare options); discretionary spending caps (binding caps on non-defense discretionary spending); a balanced budget amendment (a constitutional requirement that the federal government not run deficits except in emergencies); and economic growth strategies (tax and regulatory policies designed to grow GDP faster than debt, reducing the debt-to-GDP ratio without spending cuts).
Chuck Warren’s work with congressional clients through September Group has put him directly in the room where budget negotiations happen. The practical reality is that entitlement reform — the only path to long-term fiscal sustainability — is politically difficult because the beneficiaries of current programs vote at high rates and resist changes.
Frequently Asked Questions
Q: How much is the U.S. national debt?
A: The U.S. national debt exceeds $36 trillion as of 2026, representing approximately 125 percent of annual GDP.
Q: What is the annual U.S. budget deficit?
A: The fiscal year 2025 budget deficit was approximately $1.9 trillion — the amount by which spending exceeded revenue in that year.
Q: What do conservatives propose to reduce the national debt?
A: Conservative proposals include entitlement reform (means-testing, retirement age adjustments), discretionary spending caps, a balanced budget amendment, and economic growth strategies to grow GDP relative to debt.
