US Economy Under Strain? How US Growth Is Tied To Foreign Inflows

The US national debt, which reached $38.6 trillion in February 2026, is fundamentally tied to foreign capital inflows, which help finance the country's persistent budget deficits and investment needs. As of 2025, foreign investors—including foreign governments, central banks, and private entities—hold approximately 29-32% of US Treasury securities, totalling nearly $9.1 to $9.4 trillion. This reliance on foreign capital allows the US to maintain lower interest rates than would otherwise be possible and funds both public spending and private investment.