National Debt vs. Deficit: What the Numbers Mean

Last updated October 29, 2026

“Deficit” and “debt” get used interchangeably in political arguments, but they’re different numbers. The deficit is a one-year shortfall. The debt is the running total. Here’s how the U.S. Treasury explains them.

The deficit

When the federal government spends more than it collects in a year, a deficit results. To pay for it, Treasury explains, the government borrows by selling marketable securities such as Treasury bonds, bills, notes, floating rate notes and Treasury inflation-protected securities (TIPS).

The national debt

Treasury defines the national debt as the total amount of outstanding borrowing by the federal government accumulated over the nation’s history, the accumulation of borrowing along with associated interest owed to investors. Recurring deficits, which Treasury calls common, make the debt grow. On October 29, 2026, Treasury’s guide, updated daily from its Debt to the Penny dataset, showed the debt at about $40.58 trillion.

What’s in it, and what isn’t

Treasury says the debt is made up of distinct types: marketable or non-marketable securities, and debt held by the public versus debt the government owes itself (intragovernmental). The national debt does not include state and local government debt, or individuals’ debts such as credit cards or mortgages. Claims that add those in are measuring something else.

The debt ceiling

The debt ceiling, or debt limit, is a restriction imposed by Congress on the amount of outstanding national debt. Treasury describes it as the amount the Treasury can borrow to pay bills that have come due. Once it’s reached, the government can’t increase outstanding debt, but Treasury can use extraordinary measures authorized by Congress to temporarily suspend certain intragovernmental debt and keep borrowing for a limited time.

How debt claims go wrong

Debt vs. deficit. “We cut the deficit” can be true while the debt still rises, because a smaller deficit is still added to the debt.
Total vs. held by the public. The two figures differ by intragovernmental debt; check which is quoted.
Dates. The debt changes daily. A figure is only meaningful with its date.
Including non-federal debt. State, local or household debt isn’t part of the national debt.

See our worked example: “The U.S. national debt has passed $40 trillion.”

A long history of federal debt

Treasury’s guide notes the U.S. has carried debt almost continuously since its founding. Revolutionary War debts were over $75 million by January 1, 1791. The debt was briefly eliminated in 1835 after sales of federal land and budget cuts, then grew again with later wars: from $65 million in 1860 to almost $3 billion shortly after the Civil War ended in 1865, and roughly $22 billion after World War I. Treasury lists the Afghanistan and Iraq wars, the 2008 Great Recession and the COVID-19 pandemic as recent events behind large increases, and says spending rose about 50% from FY 2019 to FY 2021, largely due to the pandemic.

Debt compared with the economy

Treasury points out that comparing a country’s debt with its gross domestic product shows its ability to pay down debt, and calls this ratio a better indicator of fiscal health than the dollar total alone. When someone quotes only a dollar figure, ask how it compares with GDP for the same period. See our GDP explainer.

Sources

U.S. Treasury Fiscal Data: America’s Finance Guide, National Debt. Checked October 29, 2026.

More explainers

Last updated October 29, 2026. Facts checked October 29, 2026 against the official sources linked above. EvenFacts is independent and isn’t affiliated with any government agency, party or candidate. This explainer is general information, not legal or financial advice, and it doesn’t take a side.