US federal net interest spending reached a record $1.05 trillion in fiscal year 2026, ending in September, according to Treasury Department data reported by Bloomberg. This marks an increase of over 8% from the $970 billion recorded in fiscal 2025.
The Peter G. Peterson Foundation estimates that this expenditure equals approximately 3.2% of GDP, potentially surpassing the previous record set in 1991, pending final quarterly GDP data release later this month. The report highlights that rising interest costs are consuming a growing portion of federal revenue, intensifying pressure to borrow for debt service and potentially weakening the US's fiscal capacity to respond to economic shocks.
US Net Interest Spending Hits Record $1.05 Trillion in Fiscal 2026, Surging Over 8% YoY
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