Intragovernmental Debt
The Treasury owes this part of the debt to other federal agencies. Intragovernmental holdings totaled more than $6.5 trillion in
February 2022.1 Why would the government owe money to itself? Because some agencies, like the
Social Security Trust Fund, take in more revenue from taxes than they need. These agencies then invest in U.S. Treasurys rather than stick this cash under a giant mattress,
This transfers the agencies' excess revenue to the general fund, where it's spent. They redeem their Treasury notes for funds as needed. The federal government then either raises taxes or issues more debt to raise the cash.
Most of the U.S. national debt is owned by Social Security, the Federal Reserve, and foreign investors. Learn how it impacts the economy and you.
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