America Is Paying $1 TRILLION in Interest

The panel raises concerns about federal spending and the growing cost of servicing America’s debt. The strongest number is real: CBO projects the federal government will spend just over $1 trillion on net interest in fiscal 2026, up from $970 billion in 2025.
CBO projects a $1.9 trillion federal deficit in FY2026, with $7.4 trillion in spending against $5.6 trillion in revenue. Debt held by the public is projected at roughly 101% of GDP, while net interest alone reaches about 3.3% of GDP. The longer-term arithmetic is more concerning. Under CBO’s current-law baseline, debt held by the public rises to 120% of GDP by 2036 while annual net interest costs more than double to $2.1 trillion. CBO’s director says the fiscal trajectory is not sustainable.
Cutting the deficit isn’t simply about discretionary programs. CBO says rising Social Security and Medicare spending plus increasing interest costs are major drivers of future outlays. In 2026, discretionary spending is projected at $1.9 trillion against $4.5 trillion in mandatory outlays