Explore/Interest vs other spending
Net interest vs major outlays · FY2025
$1.02T on interest

Interest now costs more than defense.

Updated May 28, 2026 · U.S. Treasury (MTS) & CBO

Key figures
Net interest · FY2025$1.02T
Defense$0.88T
More than defense by$140B
Rank in the budget#2
Federal outlays by category · FY2025

Net interest is what the Treasury pays bondholders each year, after interest it collects. In FY2025 it ran past the entire defense budget for the first time in modern history.

What this means

Borrowing isn't free. The interest the government pays on the debt is now one of the largest items in the entire federal budget — larger than national defense — and it is the fastest-growing. Every dollar spent servicing the debt is a dollar not spent on anything else.

Unlike most programs, interest isn't a policy choice that can be debated line by line — it's the automatic bill for past borrowing, and it rises with both the size of the debt and the level of interest rates.

Why it matters
It's the fastest-growing line
Higher debt plus higher rates means interest is climbing faster than any major program.
It crowds everything else out
Money spent on interest can't fund defense, research, or benefits — and it doesn't buy anything new.
See it versus GDP →
Rates are the wild card
Even if the debt stopped growing, a rise in interest rates would keep this number climbing.
Adjusted for inflation →
Spending & net interest vs revenue · share of GDP

Net interest (dark) stacks on top of program spending; the gap above the revenue line is the deficit. The interest band widens over time — its fastest-growing part. Actual through 2025, CBO projection after.

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The Weekly Debt NumberFri · May 29
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New breakdownInterest vs. defense
This week's reads
Treasury sells $58B in 7-year notes as yields climb · Reuters
CBO lifts its 2026 deficit estimate to $1.9 trillion · CBO
Net interest on track to top $1T this fiscal year · WSJ
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Outlay figures are FY2025 federal spending by category (U.S. Treasury Monthly Treasury Statement / CBO); net interest is interest paid less interest received. The over-time chart is estimated from Congressional Budget Office data and long-term projections. The newsletter preview is illustrative. Figures are the latest available estimates — DebtPerPerson is independent and nonpartisan, for general education, not financial or political advice.