The federal government is now paying roughly $24 billion a week in interest, according to new Congressional Budget Office estimates. The national debt stands above $39.4 trillion.
Borrowing has averaged $155 billion a month over the first nine months of fiscal 2026, which began in October. The CBO put total borrowing for that stretch at about $1.39 trillion. Interest costs in the same nine months reached an estimated $939 billion, up $100 billion, or 13%, from a year earlier.
That bill is bigger than the Pentagon’s. Interest payments topped Defense Department outlays by about $20 billion over the period, the CBO estimated.
Why the bill keeps rising
Longer-term interest rates are higher and the debt is larger. Together they have pushed financing costs sharply up after years of historically cheap money following the 2008 financial crisis.
Entitlements are climbing as well. Social Security spending rose by $62 billion over the period, reflecting bigger benefit payments and more recipients. Medicare went up $58 billion on higher enrollment and reimbursement rates. Medicaid grew $49 billion, roughly 10%, mostly because of higher costs per enrollee.
Interest, unlike those programs, buys nothing new. It is the price of carrying obligations built up in earlier years. Many economists argue that this limits what lawmakers can do: as interest takes a bigger share of revenue, fewer resources remain for new initiatives unless taxes rise, spending falls elsewhere or borrowing grows.
Different yardsticks
The $24 billion figure is a gross measure. ITM Trading, a precious metals dealer, points out that the Bureau of Economic Analysis put federal interest spending at a seasonally adjusted annual rate of about $1.219 trillion in the first quarter of 2026, or roughly $23.4 billion a week. The CBO’s narrower net-interest measure is projected at about $1 trillion for the fiscal year, around $19.2 billion a week. Treasury reported about $104 billion in net-interest spending in June alone.
Looking ahead, the CBO projects debt held by the public will rise from about 101% of GDP in 2026 to 120% by 2036. Net interest is projected to climb from 3.3% of GDP to 4.6% over those years. The CBO has described the trajectory as unsustainable.
Sources
- U.S. Debt Interest Hits $24 Billion a Week as National Debt Climbs to $39.4 Trillion, CBO Says
- U.S. Interest Hits $24B a Week Triggering Next Debt Crisis – ITM Trading
