U.S. Net Interest Costs Hit Record $1.05 Trillion

The United States Department of the Treasury reported that net interest costs for the federal government reached a record $1.05 trillion for fiscal 2026. This figure marks an increase of more than 8% over the $970 billion recorded in fiscal 2025.

Data from the Peter G. Peterson Foundation estimates that these costs will account for 3.2% of gross domestic product, a level that would surpass the previous record established in 1991. The rising interest burden consumes a growing share of federal revenue, which increases the risk associated with government borrowing and leaves the country more vulnerable to economic shocks.