Interest payments on federal borrowing now exceed budgets of Defense and Medicare: Report

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Source: https://www.usdebtclock.org

During the first seven months of Fiscal Year (FY) 2024, which ends Sept. 30, spending on the federal government’s net interest on borrowing has reached $514 billion. That exceeds spending on both national defense ($498 billion) and Medicare ($465 billion), according to the Committee for a Responsible Federal Budget.

Overall spending has totaled $3.9 trillion thus far. Spending on interest is also more than all the money spent this year on veterans, education, and transportation combined. 

“Interest on the debt is currently the fastest growing part of the budget, nearly doubling from $345 billion (1.6 percent of GDP) in FY 2020 to $659 billion (2.4 percent of GDP) in 2023, and net interest is on track to reach $870 billion (3.1 percent of GDP) by the end of FY 2024. Spending on interest is now the second largest line item in the budget and is expected to remain so for the rest of the fiscal year,” the watchdog group reported. By 2051, interest will be the largest line item in the budget.

“Rising debt will continue to put upward pressure on interest rates. Without reforms to reduce the debt and interest, interest costs will keep rising, crowd out spending on other priorities, and burden future generations,” CRFB said at this link.

The U.S. Debt Clock says national debt from all government sources is nearly $35 trillion. Interest on the national debt is $827 billion as of this writing, on the debt clock.

19 COMMENTS

  1. FYI … Utilizing the “Time Machine” button in the upper left-hand corner, the National Debt will grow from 34.7T to $46.9T … a 35% increase in 4-years!!! Completely unsustainable and irresponsible.
    You suppose your “Pension, 401K – Roth IRA, Savings, and/or Portfolio” will increase in value to curb the impending inflation? Or, will these instruments you’ve been diligently working to grow – preserve merely be confiscated to pay-off this runaway debt? REMEMBER, something like this confiscation happened once before in recent history, re: Cyprus (2013).
    It would be great to hear from “The Magnificent-3” (ie: Murkowski, Peltola, and Sullivan) to hear how they plan to help contribute a meaningful solution, as this has happened on their watch. Or, maybe their assets are immune from confiscation and they have no comments, in fear it can be held against them?

    • Open borders allowing fentanyl / white powders and criminals into our country at massive scale.

      Funding a trillion a year global military with more then 500 bases around the planet.

      Funding at least two – and optional – hot wars.

      Supporting massive federal spending into nearly every area of American life in order to control nearly every area of American life. Hence our heavily purchased and propagandized culture of weak people and widespread corruption in nearly every institution.

      We are like Wile E. Coyote after he has run off a cliff. Our forward momentum makes it seem like we have solid ground beneath us, but we haven’t looked down yet. We are getting to the looking down phase.

  2. It is ok as the majority don’t care.
    I am waiting for when bankrupt country can’t pay its bills.
    I want to see all the government supported people and entities go crazy as the money ran out.
    You watch the masses vote in the thieves and liars to represent them again.

  3. When the music stops in this game of musical chairs, just make sure you are sitting on hard assets. It’s time for the sheep to be sheared again. Why does the government have to borrow it’s own money?

  4. I’ve seen this on social media, 5 rules to fix congress:
    1. Term limits for all.
    2. Congressional salary is the median salary of the state you represent with no pension.
    3. No travel to Washington DC to vote, we have zoom and the technology to address this.
    4. No foreign travel, they are not diplomats. If they want a vacation they can pay for it.
    5. When speaking to the media they must be held liable to their oath to the constitution and perjury charges for trying to change what they said.

  5. If we follow the GOP plan of cutting taxes for the wealthy, defunding the IRS, and increase Defense spending the USA will be forced to sell off assets to pay its bills. Guess who will be lining up to buy it, all those who have touted Reagan’s Trickle Down economics would make every prosperous. Don’t worry they will make sure you work until you die so they can keep wages low.

    • Huh, maybe you should go take a look what Javier has done down in Argentina. Cut the nonsense government departments and low and behold their budget is in the black with a 594 million dollar surplus. I do not recall a department of education, epa, fblie, and a majority of our waste of taxpayers monies. Time for a good old fashioned fire sale and make these govt workers go back to the private sector and compete.for a job.

        • Milei is the first of many. I hope he chainsaws most of the state and I wish him well in this task.

          Libertarianism and voluntarism are the future. Your heavily centralized state with its monopoly on mass violence is the past. I can not wait to bury it.

  6. Usury in action. How is it that a nation pays interest on its own money..? To whom? America is like the Weimar Republic right now in every way, even Alaska is being robbed by the same tribe. We need to return to the common sense of Brooks Adams and the like. Pound was right about a great many things.

  7. This issue is critically important yet, where is this being covered elsewhere? This is the financial ruin of our country…. most in Congress do not care. Biden does not care, and Trump doesn’t care either- after he allowed the debt to grow under his watch by $7.8 trillion. This should be a campaign issue for Republicans in the presidential election, but Trump is compromised, and the Democrats want our country to fail.

    What a cluster F.

  8. Well, I guess they have to kill off us old people, submit to communist China, and do away with the military.

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