U.S. Debt Interest Payments Hit $624B, May Reach $1.1T

May 11, 2024, 02:20 PM

The U.S. government's interest payments on public debt have surged to unprecedented levels, now ranking as the second largest federal expense, only behind Social Security. As of April, the Treasury Department reported spending $624 billion on interest payments for the fiscal year, a 36% increase year-over-year, representing 16% of the federal budget. This expense has surpassed the costs of defense ($471 billion), Medicare ($565 billion), Medicaid ($355 billion), and the Department of Health and Human Services. Projections indicate that interest payments could exceed $1.1 trillion for the current fiscal year. This escalation is attributed to the rolling over of old debt at higher interest rates and the issuance of new debt.