U.S. Interest Costs on Public Debt Reach Record $616 Billion in First Seven Months of FY2026
Net interest payments on U.S. public debt totaled $616 billion for the first seven months of fiscal year 2026. The figure is $37 billion higher than the same period last year.
rnz.co.nzU.S. public debt reached $616 billion in the first seven months of fiscal year 2026. 4 percent, above the same period in fiscal year 2025.
Interest payments now rank as the second-largest federal spending category. They exceed Defense and Medicare outlays and trail only Social Security.
Interest costs have more than tripled compared with the same seven-month period in 2021. 1 trillion in 2036. 2 trillion. 6 percent by 2036.
Key Facts
Story Timeline
2 events- FY2026 to date
Interest costs reached $616 billion for the first seven months.
1 source@KobeissiLetter - FY2025 same period
Interest costs were $37 billion lower than the current period.
1 source@KobeissiLetter
Potential Impact
- 01
Higher interest payments reduce funds available for other federal programs.
- 02
The Congressional Budget Office will update long-term fiscal projections.
Transparency Panel
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