Foreign Media: U.S. Interest Payments Exceed Defense Spending for the First Time, Expected to Reach $210 Billion by 2036
According to data from the White House and the latest projection from the Congressional Budget Office (CBO) in February 2026, U.S. federal debt interest payments have surpassed defense spending for the first time in 2024—an unprecedented development in nearly a century. In 2024, net interest expenditures reached $879.9 billion, exceeding defense spending of $850.7 billion. In 2025, interest expenses are projected to rise further to $970 billion—nearly triple the level before the pandemic. It is expected to surpass $1 trillion in 2026, and by 2036, it will more than double to $210 billion, while defense spending is projected to remain at only $110 billion, meaning interest payments will be nearly twice the defense budget.
This historic reversal stems from multiple converging factors. The pandemic triggered a sharp expansion of debt, compounded by prolonged high-interest-rate conditions that significantly increased the cost of debt servicing. U.S. federal debt has grown from $9 trillion in 2010 to $16.8 trillion in 2019. The low-interest era masked the true cost of debt, but with rising interest rates, these costs have now become fully apparent.
Analysts warn that the ongoing expansion of interest expenditures will squeeze funding available for infrastructure, scientific research, and other critical areas, reducing the government’s policy flexibility during economic downturns or sudden crises, posing a deep-seated threat to America's long-term fiscal health.
Original article: toutiao.com/article/1863909320174599/
Disclaimer: This article represents the personal views of the author