US debt interest burden seen as growing fiscal threat
Publicly held US debt is projected to rise from 101% of GDP in 2026 to 120% by 2036, leaving more federal revenue consumed by interest costs.
The federal interest bill is emerging as a serious budget constraint. Publicly held US debt is projected to increase from 101% of GDP in 2026 to 120% by 2036.
As the debt load expands, a larger share of federal revenue is being directed to interest payments instead of defense, infrastructure, healthcare and other spending priorities. Persistently elevated interest rates would compound the pressure.
The projections underscore how higher borrowing costs and rising debt levels interact, leaving less room for other budget items.
Source: First Squawk