Who Owns Most of the US Debt?

The largest share of the US debt is held by a diverse group of other domestic holders within the United States. This broad category includes individual investors, corporations, state and local governments, mutual funds, and banks.

Understanding the US Debt Structure

The gross federal debt of the United States is primarily divided into two main categories:

1. Debt Held by the Public: This portion constitutes nearly 80% of the total gross debt. It is owned by entities outside the federal government itself.
2. Intragovernmental Holdings: This accounts for the remaining approximately 20% of the gross debt. This debt is held by various federal government accounts, primarily federal trust funds such as Social Security and Medicare.

Breakdown of Publicly Held Debt

Focusing on the "Debt Held by the Public" (nearly 80% of the total US debt), its ownership is further distributed as follows:

• Domestic Holders: Approximately two-thirds of the publicly held debt is owned by entities within the United States. This collective group represents roughly 53.3% of the total US debt.
  • The Federal Reserve: The U.S. central bank holds about a third of this domestically held debt, which translates to approximately 17.8% of the total US debt.
  • Other Domestic Holders: This significant segment comprises the remaining two-thirds of domestically held public debt. These are diverse private and public entities, and they collectively own approximately 35.5% of the total US debt, making them the largest single category of debt holders. This group includes:
    • Individual investors
    • Corporations
    • State and local governments
    • Mutual funds
    • Banks
• Foreign Holders: The remaining one-third of the publicly held debt is owned by foreign governments and investors. This accounts for approximately 26.7% of the total US debt. Foreign holdings of US debt have generally increased over the past decade.

Summary of Major US Debt Holders

To illustrate the distribution, here's an approximate breakdown of who owns the US national debt:

As the table demonstrates, the collective group of "Other Domestic Holders" maintains the largest share of the US debt.