National Debt Law and Legal Definition

National debt refers to the debt of the U.S. and federal agencies held by the public. It is the debt of the national government as distinguished from the debts of individuals and businesses and political subdivisions.

National debt includes the debt of the U.S. plus the debts of the federal agencies less U.S. securities held by federal agencies and federal trust funds, and federal agency securities held by the U.S. Treasury and other federal agencies.