According to the US Treasury Department, the cost of carrying America's national debt reached a record $1.052 trillion in fiscal 2026, which ended on September 30. This figure marks an 8% increase compared to the $970 billion recorded in fiscal 2025.
During the same period, total federal receipts grew by 3.2% to reach approximately $5.40 trillion. As a result, interest costs on the public debt accounted for roughly 20% of total federal revenue.
The rising interest bill surpassed national defense spending, which totaled $965 billion for the year. However, Social Security remained the largest line item in the federal budget at $1.67 trillion—reflecting a 5.5% or $86 billion increase from the previous year—followed by Medicare expenses at $1.073 trillion.
Overall, the federal government ran a $1.99 trillion deficit for fiscal 2026, driven by record outlays of approximately $7.40 trillion.
The Peter G. Peterson Foundation noted that the nation's rising debt and relatively high interest rates will continue to increase federal borrowing costs. According to projections from the Congressional Budget Office (CBO), if current laws remain unchanged, net interest payments will total $16.2 trillion over the next decade and climb to an annual cost of $2.1 trillion by 2036.
