"Between October 2025 (when the 2026 fiscal year started) and February, the Treasury spent an additional $31 billion on net interest on public debt, compared to the prior year. As a result, in just five months, the Treasury forked out a total of $433 billion to service public debt, which is now nearing $38.9 trillion."
"The CBO said that outlays for interest increased "because the debt was larger than it was in the first five months of fiscal year 2025 and because of higher long-term interest rates." It added: "Declines in short-term interest rates partially mitigated the overall rise in interest payments.""
"Maya MacGuineas, president of the Committee for a Responsible Federal Budget (CRFB), said that interest payments on the debt are expected to exceed $1 trillion this year, and will surpass $2 trillion by 2036. "This cannot be sustainable," MacGuineas said."
The U.S. government borrowed $1 trillion in the first five months of fiscal year 2026, with February alone accounting for $308 billion in new borrowing. Interest costs on the national debt totaled $433 billion through February, representing a $31 billion increase compared to the same period last year. The debt now exceeds $38.9 trillion. Higher long-term interest rates and increased debt levels drove the rising interest payments, though short-term rate declines provided partial mitigation. While the deficit improved compared to the prior year's $142 billion additional borrowing, budget experts warn this trajectory remains unsustainable, with interest payments projected to exceed $1 trillion annually and reach $2 trillion by 2036.
Read at Fortune
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