Fact Check: Who Holds US Debt?
What We Know
The United States national debt is a complex topic involving various types of debt and a multitude of holders. As of March 2025, the total national debt was approximately $36.4 trillion, with about $29 trillion classified as debt held by the public and $7.4 trillion as intragovernmental holdings (Wikipedia). The public debt includes securities owned by both domestic and foreign investors, while intragovernmental debt consists of funds held in government trust funds, such as Social Security.
Foreign holders of U.S. Treasury securities are significant players in this landscape. According to the U.S. Treasury, as of March 2025, Japan was the largest foreign holder with approximately $1.13 trillion, followed closely by the United Kingdom and China, which held around $779 billion and $765 billion, respectively (U.S. Treasury). Other notable foreign holders include the Cayman Islands, Canada, and Luxembourg, each holding substantial amounts of U.S. debt.
Analysis
The claim regarding who holds U.S. debt is substantiated by multiple credible sources. The U.S. Treasury provides detailed data on foreign holders of Treasury securities, which is essential for understanding the distribution of U.S. debt (U.S. Treasury). The data indicates that foreign entities hold a significant portion of the national debt, which is crucial for evaluating the implications of foreign ownership on U.S. fiscal policy and economic stability.
However, the reliability of the data can vary. The U.S. Treasury's data is generally considered authoritative, but it notes that the ownership attribution may not be precise due to the complexities of international finance. For instance, U.S. securities held in overseas custody accounts may not reflect the actual owners (U.S. Treasury). This limitation suggests that while the data is useful, it should be interpreted with caution.
Additionally, sources like Visual Capitalist and the Peter G. Peterson Foundation provide visual and analytical breakdowns of the debt, indicating that domestic holders, including the Federal Reserve, also play a significant role in the debt landscape (Visual Capitalist, PGPF). The Federal Reserve alone held about $5.24 trillion of the public debt, highlighting the importance of domestic entities in the overall debt structure.
Conclusion
Needs Research: While there is substantial data available regarding who holds U.S. debt, the complexity of the ownership structure—particularly the distinction between domestic and foreign holders, as well as the nuances of intragovernmental versus public debt—requires further investigation. The data from the U.S. Treasury and other credible sources provides a foundational understanding, but the potential inaccuracies in ownership attribution and the evolving nature of debt holdings necessitate ongoing research to fully grasp the implications of U.S. debt ownership.
Sources
- Table 5: Major Foreign Holders of Treasury Securities
- Understanding the National Debt | U.S. Treasury Fiscal Data
- National debt of the United States - Wikipedia
- Charted: Here's Who Owns U.S. Debt - Visual Capitalist
- The Federal Government Has Borrowed Trillions. Who Owns All that Debt?
- Which countries own the most US debt? - USAFacts
- Who holds US national debt? | FRED Blog