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U.S. Debt Interest Increases to USD270B in 2026 Opening Quarter
(MENAFN) America's net interest obligations on its national debt climbed to $270.3 billion during the opening quarter of fiscal 2026, eclipsing the country's military expenditures.
The US' national debt stands at $38.5 trillion, while high interest rates drive up the borrowing costs of the federal government.
US President Donald Trump has been pressuring the Fed to cut the rates particularly because of the rising federal debt, saying Fed Chair Jerome Powell "cost the USA a fortune and continue to do so" due to high interest rates.
The federal government's spending for the first three months of fiscal 2026, starting on Oct. 1, 2025, and ending on Sep. 30, 2026, was $1.8 trillion, according to the US Treasury Department data.
During October through December 2025, Washington's biggest outlay went toward social security, totaling $402.1 billion.
Debt servicing expenses ranked second behind social security with $270.3 billion, representing 14.8% of aggregate spending.
Federal authorities allocated $266.9 billion on defense, $261.3 billion on healthcare, $254.1 billion on Medicare, $165.6 billion on income securities, $114.1 billion on veteran benefits and services, $39 billion on education, $33.3 billion on transportation, and around $21 billion on other items during the same period.
In fiscal 2025, the interest spending was 2.5 times larger than pre-pandemic levels.
During fiscal 2019, prior to the COVID-19 pandemic, Washington's interest expenditure stood at $375.6 billion.
This figure reached $344.7 billion in 2020, $352.3 billion in 2021, $475.1 billion in 2022, $659.2 billion in 2023, $881.7 billion in 2024, and $970.4 billion in 2025.
The US' expanding debt burden and elevated interest rates persistently intensify pressure on financing expenses. Debt servicing payments are anticipated to emerge as one of the most rapidly expanding line items in the nation's fiscal plan going forward.
Net interest payments are expected to rise to $1 trillion in fiscal 2026, according to the Congressional Budget Office (CBO), reaching a total of $13.8 trillion in fiscal 2026 and 2035.
The US' national debt stands at $38.5 trillion, while high interest rates drive up the borrowing costs of the federal government.
US President Donald Trump has been pressuring the Fed to cut the rates particularly because of the rising federal debt, saying Fed Chair Jerome Powell "cost the USA a fortune and continue to do so" due to high interest rates.
The federal government's spending for the first three months of fiscal 2026, starting on Oct. 1, 2025, and ending on Sep. 30, 2026, was $1.8 trillion, according to the US Treasury Department data.
During October through December 2025, Washington's biggest outlay went toward social security, totaling $402.1 billion.
Debt servicing expenses ranked second behind social security with $270.3 billion, representing 14.8% of aggregate spending.
Federal authorities allocated $266.9 billion on defense, $261.3 billion on healthcare, $254.1 billion on Medicare, $165.6 billion on income securities, $114.1 billion on veteran benefits and services, $39 billion on education, $33.3 billion on transportation, and around $21 billion on other items during the same period.
In fiscal 2025, the interest spending was 2.5 times larger than pre-pandemic levels.
During fiscal 2019, prior to the COVID-19 pandemic, Washington's interest expenditure stood at $375.6 billion.
This figure reached $344.7 billion in 2020, $352.3 billion in 2021, $475.1 billion in 2022, $659.2 billion in 2023, $881.7 billion in 2024, and $970.4 billion in 2025.
The US' expanding debt burden and elevated interest rates persistently intensify pressure on financing expenses. Debt servicing payments are anticipated to emerge as one of the most rapidly expanding line items in the nation's fiscal plan going forward.
Net interest payments are expected to rise to $1 trillion in fiscal 2026, according to the Congressional Budget Office (CBO), reaching a total of $13.8 trillion in fiscal 2026 and 2035.
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