US Interest Payments on National Debt Reach $1.052 Trillion in Fiscal 2026

The US Treasury Department has announced that interest payments on the national debt have reached an unprecedented $1.052 trillion in fiscal 2026, which ended on September 30. This figure marks an 8% increase from the previous fiscal year, where interest payments totaled $970 billion.

These interest costs now account for approximately 20% of the federal government's total revenue, which grew only 3.2% to about $5.40 trillion during the same period. Notably, Social Security expenses amounted to $1.67 trillion, while Medicare costs reached $1.073 trillion, both exceeding the interest payments on national defense, which stood at $965 billion.

Overall, the government faced a $1.99 trillion deficit for the year, with total outlays hitting around $7.40 trillion. The Peter G. Peterson Foundation has warned that the rising national debt and high interest rates will continue to escalate federal borrowing costs, projecting that net interest payments could total $16.2 trillion over the next decade, potentially reaching an annual cost of $2.1 trillion by 2036.