The majority of U.S. debt is owed to American citizens, institutions, and the government itself.
- Intragovernmental Holdings: About 20% ($7.4 trillion) is "debt the government owes itself". This consists of surplus revenue invested by federal agencies, such as:
- Social Security Trust Funds: The largest single holder.
- Medicare Trust Funds.
- Federal Employee Retirement Funds.
- The Federal Reserve: Owns approximately 13%–19% ($4.6 trillion) as part of its role in managing interest rates and the money supply.
- Private Domestic Investors: Own roughly 42% of the debt. This includes individual American citizens, banks, insurance companies, mutual funds, and pension funds.
2. Foreign Holders (Approx. 25–30%)
Foreign entities hold about $8.8 to $9.1 trillion in Treasury securities. As of early 2026, the top foreign creditors are:
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Japan: The largest foreign holder, with roughly $1.13 trillion.
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United Kingdom: The second-largest holder, with approximately $807 billion.
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China: Once the top holder, China now ranks third with roughly $750–765 billion as it has been steadily reducing its holdings.
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Cayman Islands: A major holder (approx. $455 billion) largely due to being a primary location for hedge funds.
- Other Notable Holders:
Canada,Luxembourg,Belgium,France, andIreland.
