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The US National Debt Is Surging – but Where Exactly Is That Money Going?

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The numbers are so large, it’s hard to wrap your head around them sometimes…

The U.S. national debt now stands at over $35 trillion, equating to approximately $106,000 per person.

The debt continues to rise due to structural factors such as an aging population, increasing healthcare costs, and insufficient tax revenues, contributing to ongoing budget deficits.

And especially concerning to many investors and ordinary Americans, interest on the debt is becoming one of the fastest-growing components of federal spending, further stressing the fiscal outlook.

In the above slides, we’ll walk through the various department spending the most money. For this data set, we’ll be looking at the numbers provided by the U.S. Treasury for August 2024.

Overall, in August, the federal government ran a budget deficit of $380 billion, a stark contrast to the $89 billion surplus in August 2023. However, the jump can be easily explained. This shift was largely due to two key factors: a $330 billion reduction in outlays in 2023 related to the Supreme Court’s decision on student debt cancellation and a timing shift in payments to August 2024. Adjusting for these factors, the deficit was $58 billion higher than the previous year.

As you’ll see in the slide, the outlays totaled $687 billion – so let’s take a look at the specific departments doing the spending.

Executive Office of the President

Joe+Biden | Joe Biden

• August Outlay (in millions): 74

Small Business Administration

• August Outlay (in millions): 222

General Services Administration

U.S. | US Capitol at sunny day

• August Outlay (in millions): 234

Department of the Interior

• August Outlay (in millions): 359

Legislative Branch

US Capitol Building in spring of 2021 with metal security fence

• August Outlay (in millions): 593

Judicial Branch

• August Outlay (in millions): 889

Corps of Engineers

Car Factory Engineer in High Visibility Vest Using Laptop Computer. Automotive Industrial Manufacturing Facility Working on Vehicle Production with Robotic Arms Technology. Automated Assembly Plant.

• August Outlay (in millions): 1,058

National Science Foundation

The Science Museum Unveils Their Latest Exhibition "Robotville" Displaying The Most Cutting Edge In European Design

• August Outlay (in millions): 1,058

Environmental Protection Agency

Hand sewers workers | Repairing a Broken Pipe

• August Outlay (in millions): 1,342

Department of Commerce

Rising high cost of living in low poor income asia people family. Past due bill debt home loan money issue young adult asian couple man woman worry shock sad tired stress in raise tax rate crisis

• August Outlay (in millions): 1,434

International Assistance Programs

Ghana+military+aircraft | UGANDA ADAPT 2010

• August Outlay (in millions): 1,771

National Aeronautics and Space Administration

NASA's James Webb Space Telescope Releases First Images

• August Outlay (in millions): 2,155

Department of State

American Bald Eagle - symbol of america -with flag. United States of America patriotic symbols.

• August Outlay (in millions): 3,425

Department of Justice

• August Outlay (in millions): 3,661

Independent Agencies

• August Outlay (in millions): 4,419

Department of Energy

Hand holding light bulb against nature on green background with icons energy sources for renewable, sustainable development. Ecology concept.

• August Outlay (in millions): 4,545

Department of Housing and Urban Development

• August Outlay (in millions): 6,134

Department of Homeland Security

• August Outlay (in millions): 6,890

Office of Personnel Management

• August Outlay (in millions): 9,686

Department of Transportation

Pete Buttigieg | Secretary Buttigieg Makes Announcement On Fuel Economy Standards

• August Outlay (in millions): 11,242

Department of Labor

government employee | A thoughtful African American business woman wearing glasses holding documents

• August Outlay (in millions): 11,437

Other Defense Civil Programs

A political map of the United States of America (USA) in North America. The map shows the borders of the 50 states, as well as the country's borders with Canada, Mexico, the Atlantic Ocean, Pacific Oc

• August Outlay (in millions): 11,865

Department of Agriculture

• August Outlay (in millions): 14,990

Other from the Department of the Treasury

• August Outlay (in millions): 15,423

Department of Education

Graduation cap university or college degree on US dollars banknotes pile. Education expense budget plan of money saving, student loan or debt, personal loan, scholarship for studying abroad concept.

• August Outlay (in millions): 38,894

Department of Veterans Affairs

A poignant moment unfolds as a Marine plays taps, honoring a fallen veteran with a solemn salute, marking their internment at a national military cemetery.

• August Outlay (in millions): 45,267

Department of Defense–Military Programs

Military command center, computer screen and woman in surveillance, headset and tech for communication. Security, world satellite map and soldier at monitor in army office at government control room.

• August Outlay (in millions): 78,749

Interest on Treasury Debt Securities (Gross)

• August Outlay (in millions): 92,293

Social Security Administration

Social Security

• August Outlay (in millions): 134,485

Department of Health and Human Services

• August Outlay (in millions): 201,788

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