Key Facts
• In 2026, U.S. national debt exceeded $38 trillion (approx. ¥5940 trillion).
• About 25% of public debt is held by foreign creditors.
• Japan holds $1.13 trillion (approx. ¥176.7 trillion) in U.S. Treasury securities.
• The United Kingdom holds $807 billion (approx. ¥126.2 trillion), now second largest foreign holder.
• China holds $750 billion (approx. ¥117.3 trillion), ranking third.
• Approximately 68–75% of debt is managed domestically in the U.S.
• U.S. government agencies hold about 20%, Federal Reserve about 13%, private investors 42–50%.
• Interest payments on debt reached $880 billion (approx. ¥137.7 trillion) in 2024.
• Interest costs expected to hit $1 trillion annually (approx. ¥156.4 trillion) by 2026.
• Monthly interest per U.S. household averages $650 (approx. ¥101,600) based on 128 million households.
Summary
As the United States enters 2026, its national debt has surpassed $38 trillion, reflecting decades of fiscal pressure. The majority of this debt is financed through U.S. Treasury securities, considered safe due to the government’s full credit backing. Foreign holders account for about a quarter of the debt, with Japan maintaining its position as the largest foreign creditor, followed by the United Kingdom and China. Japan’s investment strategy focuses on economic stability and currency management, while the UK’s holdings reflect its role as a global financial hub. China has gradually reduced its holdings amid geopolitical and economic considerations. Domestically, U.S. government funds, the Federal Reserve, and private investors manage most of the debt. Interest payments are a growing concern, with costs reaching historic highs and projected to exceed $1 trillion annually by 2026, imposing an average monthly burden of $650 per household. This interdependence between the U.S. and its major creditors underscores both financial stability and potential risks if holdings shift abruptly.
