Interest

Interest payments on the national debt are now one of the government's largest expenses — surpassing defense spending. Here's the trend.

$952.0B

Annual Interest

13.9%

Of Total Spending

$2.6B

Per Day

$36.22T

Total Debt

Interest Payments Over Time

Interest payments have skyrocketed since 2022 as the Federal Reserve raised rates. The government now pays nearly $952.0B per year just to service its debt.

Interest vs. Major Programs

Interest payments now exceed the entire defense budget and are approaching Medicare in total cost. This is money that produces no services or benefits — it simply pays for past borrowing.

Why It Matters

Crowding Out

Every dollar spent on interest is a dollar not available for education, infrastructure, healthcare, or other programs.

Rate Sensitivity

As older, lower-rate bonds mature and are replaced with higher-rate ones, interest costs will continue to rise even without new borrowing.

Compounding

The government borrows to pay interest, creating a cycle where the debt grows faster. This is the fiscal equivalent of minimum payments on a credit card.