America’s national debt is huge, but have you ever wondered who actually owns all that money? Imagine the debt as a giant pie—different groups hold hefty slices, some bigger than others. Each owner matters for the economy and you deserve clarity about where the money flows.
The Size of America’s Debt in 2025
As of April 2025, the US national debt sits at a towering $36.22 trillion. That’s like stacking $100 bills from New York City to Los Angeles—more than 24 times over! This debt climbs by $4.42 billion every day. Most economists break it into two main pieces:
- Debt held by the public: $28.96 trillion
- Intragovernmental debt: $7.26 trillion
But what does “held by the public” mean? And who are these public owners? Let’s slice the pie.
US Debt Pie Chart: The Main Slices
Below you’ll see a breakdown of US debt ownership, based on the most recent government and economic data:
- US Public & Institutions: 51%
- Foreign Investors: 24%
- Governments and private investors from countries outside the US
- Federal Reserve: 13%
- The nation’s own central bank
- Intragovernmental Holdings: 20%
- Social Security Trust Fund
- Other government trust funds and agencies
Photo by RDNE Stock project
What Is “Intragovernmental” Debt?
Think of intragovernmental debt as money the government owes itself. For example, payroll taxes are collected and held in trust funds for Social Security and Medicare. The government borrows from these funds to cover other expenses, promising to pay them back in the future.
Who in the US Owns the Most Debt?
Most US-held debt is owned by:
- Mutual funds and pensions: About $5 trillion
- State and local governments: Over $1 trillion
- Banks and insurance companies: Over $1 trillion
- The Federal Reserve: Roughly $4.7 trillion in Treasury securities
The Federal Reserve increased its stake during the pandemic, buying more Treasury securities to steady the economy. Recently, it has started to trim its holdings.
Foreign Owners: Which Countries Hold US Debt?
Foreign investors hold about $8.7 trillion of US debt. Here’s a quick look at the top holders:
- Japan: $1.12 trillion
- China: $784 billion
- United Kingdom: $690 billion
- Other countries: $6+ trillion collectively
Japan is the largest foreign owner. China’s share, however, has dropped in recent years. Other nations like Ireland, Luxembourg, and Brazil also own large portions, mostly through banks or national investment funds.
Why Do Other Countries Buy US Debt?
Investing in US Treasuries is often seen as one of the safest moves a country or investor can make. The US has a long record of paying its debts and its economy is stable compared to many others. Think of Treasuries like the world’s favorite savings account—they earn reliable interest and can be quickly sold if needed.
Debt Structure: Types of Securities
The government raises money through several types of bonds and bills. As of early 2025:
- Treasury Notes (2-10 years): 51% of all securities
- Treasury Bills (4-52 weeks): 21%
- Treasury Bonds (20-30 years): 17%
- Other securities: 11%
Most of this debt is “marketable”—it can be bought and sold on open markets. About a third of it will mature in less than a year, meaning the Treasury must continually issue new debt to pay off old debt.
How Does Debt Impact Everyday Americans?
It’s easy to glaze over big numbers, but these obligations matter. Every US household’s share of the debt is now about $274,000. Rising federal debt means more of your tax dollars go to interest payments—money that can’t be spent on schools, healthcare, or infrastructure.
Interest costs reached $678 billion in 2023 and are rising fast as rates go up. This slice of the federal budget now eats up roughly 14% of all government spending.
Will US Debt Keep Growing?
Without changes to spending or revenue, debt is projected to hit $37 trillion by September 2025. Economists warn that higher debt can:
- Push up interest rates for everyone, including on mortgages and credit cards
- Increase the risk of financial instability if investors lose confidence
- Crowd out other government spending
Debt Ceiling Drama: What Happens If We Hit the Limit?
Congress sets a “debt ceiling,” or maximum amount the government can borrow. When the ceiling is reached, special “extraordinary measures” are used to juggle payments, but those only last a few months. If the ceiling isn’t raised in time, the government risks missing payments, which could trigger chaos in world markets.
What Does It Mean for You?
Understanding who owns US debt helps you see how global finance ties into your everyday life. Taxpayers pay interest to a mix of pension funds, banks, trust funds, and foreign governments. The pie of US debt is shared all over the planet, and its growth shapes the country’s financial future.
Conclusion: The Debt Pie Is Always Changing
America’s debt pie chart in 2025 shows a mix of US households, trust funds, the Federal Reserve, and foreign countries sharing the load. Even if the slices shift over time, the whole pie keeps growing. Staying informed about who owns US debt puts you a step ahead in understanding the stakes—and how future choices will shape everything from interest rates to government policy.