US Debt Interest Costs Hit Record $723 Billion in First 8 Months of FY2026
Federal net interest payments rose 9% YoY to $723 billion, making interest costs the second-largest federal spending category after Social Security. The CBO projects $16.2 trillion in net interest costs over the next decade.
Interest costs on the U.S. national debt reached a record $723 billion in the first eight months of fiscal year 2026, up 9% year-over-year. This makes interest payments the second-largest category of federal spending, surpassing both Medicare and National Defense, trailing only Social Security.
The Congressional Budget Office projects net interest payments will total $16.2 trillion over the next decade, rising from roughly $1 trillion in 2026 to $2.1 trillion by 2036. Interest on the national debt is now the fastest-growing major item in the U.S. federal budget.
Source: First Squawk