The majority of U.S. debt is owned domestically, but among foreign holders, Japan owns the most U.S. debt, holding about $1.1 trillion as of early 2025. China is the second-largest foreign holder with around $749 billion, followed by the United Kingdom with approximately $690 billion
. In total, foreign countries own roughly $7.9 trillion in U.S. Treasury securities, which is about 22.9% of the total U.S. debt. The largest portion of U.S. debt is held by domestic investors, including the Federal Reserve System, which holds about $4.7 trillion, and other U.S. private investors and government agencies
. To summarize:
- Largest foreign holders:
- Japan: ~$1.1 trillion
- China: ~$749 billion
- United Kingdom: ~$690 billion
- Luxembourg and the Cayman Islands also hold significant amounts
- Domestic holders:
- Federal Reserve: ~$4.7 trillion
- U.S. private investors and government agencies: majority of the remaining debt
Thus, while foreign countries like Japan and China hold substantial portions of U.S. debt, most of the debt is owned domestically by U.S. government entities and investors.
