America has accomplished incredible things throughout its 250-year history, but debt is also part of its story. Today, the United States has the highest national government debt in the world. This graphic shows who holds U.S. debt, from domestic investors and foreign governments to the Federal Reserve and internal trust funds.
Breaking down who holds U.S. debt
To finance its growing deficits, the U.S. relies on a wide range of buyers, including domestic institutions, foreign governments, and its own central bank.
Of the $39 trillion in gross U.S. debt, $31.4 trillion (81%) is public debt held by domestic and foreign investors. The remaining $7.6 trillion (19%) is intragovernmental debt, reflecting internal government obligations.
Debt held by the public — the 81% portion — represents what the U.S. owes to outside investors and directly influences interest rates, borrowing costs, and financial markets. By contrast, intragovernmental debt is money the government owes to itself, primarily through programs like Social Security and Medicare.
Mutual funds and pension funds are the largest holders of U.S. public debt, with combined holdings of $6.6 trillion, reflecting strong demand for safe, liquid assets. The Federal Reserve holds $4.4 trillion on its balance sheet — more than the combined holdings of the three largest foreign creditors: Japan, the U.K., and China. However, foreign nations collectively hold $9.3 trillion, or 24%, of all U.S. debt.
Among individual investors, Warren Buffett, through his company Berkshire Hathaway, is the largest non-government holder of U.S. Treasury bills, with holdings valued at $339 billion as of Q4 2025.
What does high U.S. debt mean for the average American?
The U.S. ranks among the 10 most indebted countries in the world by debt-to-GDP ratio, and its debt is growing by roughly $1 trillion every three months. This trend can affect Americans’ standard of living.
As debt rises, a larger share of the federal budget goes toward interest payments, crowding out spending on priorities like infrastructure, defense, and social programs. Excessive debt can also dampen wage growth and job creation while contributing to higher interest rates, making mortgages, loans, and credit card debt more expensive.
As the national debt continues to grow, its composition and ownership remain critical factors in understanding the risks facing financial markets and the broader economy.
U.S. Treasury securities are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest. The principal value of Treasury securities fluctuates with market conditions. If not held to maturity, they could be worth more or less than the original amount paid.
Graphic created by Visual Capitalist; data from U.S. Treasury Fiscal Data, Joint Economic Committee, U.S. Treasury TIC, Social Security Administration Trustees, Federal Reserve, data as of March 19, 2026
Prepared by Broadridge Advisor Solutions. © 2026 Broadridge Financial Services, Inc.