US federal interest expenses hit record $1.36 trillion in FY2026, up 12% YoY, now consuming 25% of all government receipts and on track to exceed Social Security spending by end of 2028.
Macro & Markets ·
US federal interest payments on public debt reached $1.36 trillion in fiscal 2026, representing a $144 billion or 12% increase from the prior year and the sixth consecutive annual rise totaling $839 billion over that span. Interest expenses now represent 25% of total government receipts, which grew only 3.2% to $5.40 trillion, while Social Security spending climbed $86 billion or 5.5% to $1.67 trillion, positioning interest costs to surpass Social Security as the largest federal outlay by end of 2028 if current trends persist.