US interest expense surpasses defense spending for 3rd consecutive year

Interest expense on U.S. public debt as a percentage of GDP has climbed to approximately 3.2%, the highest level since at least the 1970s. This figure has nearly tripled over the past five years.

Over the same period, national defense spending as a share of GDP has fallen to roughly 3.0%, the lowest since the early 2000s. As a result, interest expense has outpaced defense spending for three consecutive years—the longest such streak in at least 46 years.

In nominal terms, annualized interest payments have surged by $711 billion (or 140%) since 2020 to a record $1.22 trillion. Meanwhile, defense spending has increased by $237 billion (or 35%) to a record $923 billion. This data underscores the growing burden of U.S. public debt.