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.?
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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:?
Japan
:?The largest foreign holder, with roughly?$1.13 trillion.
United Kingdom
:?The second-largest holder, with approximately?$807 billion.
China
:?Once the top holder, China now ranks third with roughly?$750–765 billion?as it has been steadily reducing its holdings.
Cayman Islands
:?A major holder (approx.?$455 billion) largely due to being a primary location for hedge funds.