The $38 trillion national debt is to blame for over $1 trillion in annual interest payments from here on out, CRFB says | Fortune

"America's fiscal outlook continues to enter uncharted territory, with the Committee for a Responsible Federal Budget (CRFB) projecting the era of trillion-dollar annual interest payments has arrived. In a grim fiscal milestone first breached in fiscal year 2025, the costs to service the nation's ballooning debt have spiraled, creating a financial pickle that threatens to squeeze the federal budget for decades to come."

"While the specific line item for net interest in the federal budget totaled $970 billion for the fiscal year, the Congressional Budget Office (CBO) indicates actual spending for net interest payments on the public debt broke the barrier of $1 trillion for the first time in FY 2025. Over the coming decade, the CRFB projects these figures will increase, surpassing $1.5 trillion in 2032 and $1.8 trillion in 2035."

"If (as looks increasingly likely) the Supreme Court finds many of the Trump administration's tariffs illegal, and provisions in the One Big Beautiful Bill Act are made permanent without offsets, the CRFB estimates interest payments passing $2.0 trillion in 2034 and $2.2 trillionin 2035. The watchdog noted with alarm just five years ago, in FY 2020, net interest costs were a relatively manageable $345 billion, but have roughly tripled since then amid a flurry of pandemic-related emergency spending."

The national debt stands at $38 trillion, equal to 100% of GDP. Net interest was recorded as a $970 billion budget line item, while actual net interest payments exceeded $1 trillion in FY2025 per CBO estimates. Projections show net interest rising to about $1.5 trillion by 2032 and $1.8 trillion by 2035, with potential increases to roughly $2.0–$2.2 trillion if certain tariffs are struck down and unoffset provisions remain permanent. Net interest costs were $345 billion in FY2020 and have roughly tripled since then amid pandemic-related emergency spending. Rising interest costs threaten long-term fiscal flexibility and increase burdens on future generations.

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