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To fund government spending, the U.S. government issues Treasury bonds to raise funds from a variety of sources, including domestic financial institutions, foreign governments, and the Federal Reserve. As total U.S. government debt continues to grow, the composition of creditors and the share held by different groups are key factors for assessing risk in the world’s largest financial market and economy.
Of the nearly $39 trillion in U.S. government debt, about $31.4 trillion, or 81%, is currently held by domestic and foreign investors.
The remaining roughly $7.6 trillion, or 19%, is debt held by funds and government agencies. These are intragovernmental borrowings, mainly between the U.S. government and funds such as Social Security. The figure is nearly double the combined assets of the world’s top 20 richest billionaires.
Debt held by the public is the portion the U.S. government borrows from external investors, directly affecting interest rates, borrowing costs, and financial markets. By contrast, intragovernmental debt is the amount borrowed from within the public sector.
Among external investors, mutual funds and pension funds are the largest creditors, with $6.6 trillion, indicating strong demand for safe and highly liquid assets such as U.S. Treasuries.
The Federal Reserve currently holds $4.4 trillion of U.S. Treasuries on its balance sheet—higher than the combined holdings of the three largest foreign creditors (Japan, the United Kingdom, and China) put together.
Among individual investors, Berkshire Hathaway is the largest private-sector holder of U.S. Treasury bonds, valued at $339 billion as of Q4 2025.
Debt-to-GDP perspective places the United States among the world’s top 10 nations. The size of U.S. public debt is currently rising by about $1 trillion every quarter, signaling that the debt burden is expanding rapidly and could pressure living standards.
As debt rises, the U.S. government must allocate a larger portion of the budget to interest payments, reducing fiscal space for infrastructure, defense, and social programs. High debt can also exert pressure on wage growth, employment, and interest rates, making mortgages, consumer credit, and credit-card debt more expensive.

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