U.S. net interest spending hit a record $1.05 trillion in fiscal year 2026, up more than 8% year over year.

PANews, October 17 — According to Bloomberg, U.S. Treasury Department data shows that in fiscal year 2026 through the end of September, federal government net interest expense reached $1.05 trillion, an increase of more than 8% from $970 billion in fiscal year 2025, setting a record high.

The Peter G. Peterson Foundation estimates that this spending is equivalent to 3.2% of GDP and will exceed the record set in 1991; last quarter's GDP data will be released later this month. The report noted that the interest burden is consuming a larger share of federal revenue, increasing pressure to borrow to pay interest, and could weaken the United States' fiscal space to respond to economic shocks.

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