Who owns U.S. debt?

Mostly Americans. Here's who actually holds the IOUs behind the $40 trillion national debt — and why the answer surprises a lot of people.

The big picture

Every dollar of the national debt is a Treasury security someone owns. Roughly, the $40 trillion breaks down like this:

Foreign holdings: Treasury International Capital report, August 2026. Federal Reserve: H.4.1 release, October 15, 2026. "Other U.S. investors" is the remainder of debt held by the public.

1. The government itself (about a fifth)

About $7.9 trillion is intragovernmental debt — money the Treasury owes to federal trust funds. When programs like Social Security collect more in payroll taxes than they pay out, the law requires the surplus to be invested in special Treasury securities. The biggest holders are:

• Social Security's trust funds — by far the largest.
• Federal civilian and military retirement funds.
• Medicare's trust funds, and smaller funds for things like highways and deposit insurance.

These securities can't be sold to anyone else. They're real obligations, though: as more Americans retire, Social Security is drawing down its trust funds, and the Treasury has to borrow from the public to pay them back.

2. The Federal Reserve (about a tenth)

The Fed — the country's central bank — owns about $4.6 trillion in Treasury securities. It buys them to steer interest rates and keep the financial system supplied with cash. During the pandemic it bought heavily, and its holdings peaked near $5.8 trillion in 2022 before it let them shrink. The Fed earns interest on these securities and, after covering its own costs, normally sends its profits back to the Treasury.

3. Foreign investors (about a quarter)

Foreign governments, central banks and private investors hold about $9.3 trillion — roughly 29% of the debt held by the public. They buy Treasuries because they're considered the safest, most easily traded investment in the world, and because many countries keep their savings in dollars.

One caution with this table: places like Belgium, Luxembourg and the Cayman Islands are big financial custody centers, so securities held there often belong to investors from other countries. The Treasury notes that country totals are approximate for that reason.

Does China own America?

No. China holds about $591 billion — roughly 1.5% of the total national debt. Its holdings peaked around $1.3 trillion in 2013 and have been falling since. Japan has been the largest foreign holder for years, and the U.K. has recently moved close behind it.

4. Everyone else in America (nearly half)

The largest group is U.S. investors — about $18.6 trillion. That includes:

• Mutual funds and money-market funds — which means many Americans own Treasuries through their savings and retirement accounts without realizing it.
• Banks, which keep Treasuries as safe, easy-to-sell reserves.
• Pension funds and insurance companies.
• State and local governments.
• Individuals holding savings bonds or buying Treasuries directly.