US Interest Payments on National Debt Exceed Defense Spending
Currently, the US national debt has reached $38.5 trillion, and elevated interest rates are increasing the federal government’s borrowing costs.
President Donald Trump has been urging the Federal Reserve to lower rates, citing the mounting federal debt. He criticized Fed Chair Jerome Powell, saying he “cost the USA a fortune and continue to do so” due to high interest rates.
According to data from the US Treasury Department, federal expenditures for the first quarter of fiscal 2026, spanning from Oct. 1, 2025, to Dec. 31, 2025, totaled $1.8 trillion.
During this period, the largest portion of spending went to social security, amounting to $402.1 billion. Net interest payments came next at $270.3 billion, representing 14.8% of the total federal outlay.
Other major expenditures included $266.9 billion for defense, $261.3 billion for healthcare, $254.1 billion for Medicare, $165.6 billion for income security programs, $114.1 billion for veterans’ benefits and services, $39 billion for education, $33.3 billion for transportation, and roughly $21 billion for various other items.
For comparison, in fiscal 2025, interest spending was 2.5 times higher than pre-pandemic levels, highlighting the growing financial burden of servicing the national debt.
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