U.S. National Debt Interest Payments
Annual interest payments on the U.S. national debt have surpassed $1 trillion, making interest expense the single largest line item in the federal budget — exceeding defense spending, Medicare, and Social Security individually. This milestone reflects both the scale of the debt and the impact of higher interest rates since 2022.
U.S. National Debt
$39.01T
As of 2026-03-23
When the Federal Reserve raised interest rates from near zero to over 5% between 2022-2024, the cost of servicing the national debt exploded. As older low-rate debt matures and is refinanced at higher rates, the interest burden increases. By 2034, the Congressional Budget Office (CBO) projects interest payments could reach $1.7 trillion annually, consuming an ever-larger share of federal revenue.
? Frequently Asked Questions
How much does the U.S. pay in interest on the national debt?
Annual interest payments on the U.S. national debt exceeded $1 trillion in fiscal year 2024, more than the entire defense budget. This figure continues to rise as higher-rate debt replaces maturing low-rate bonds.
What percentage of the budget is interest payments?
Interest payments now account for approximately 15-18% of total federal spending and about 3.3% of GDP — ratios not seen since the early 1990s.
Could interest payments crowd out other spending?
Yes. As interest payments grow, they consume a larger share of the budget, leaving less room for defense, social programs, and infrastructure — a phenomenon economists call 'crowding out'.
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