Official US Congress records and major news outlets

US Budget: $514B Interest Payments Surpass Defense and Medicare Spending

May 21, 2024, 10:14 PM

The United States federal budget has reached a significant milestone as interest payments on the national debt have surpassed defense spending for the first time in history. In the first seven months of fiscal year 2024, which began in October, net interest payments totaled $514 billion, outpacing defense spending by $20 billion. This development has raised concerns among policymakers and financial analysts about the sustainability of the nation's fiscal policies. The annual interest payments are projected to reach $1 trillion, further exacerbating the budgetary pressures. Additionally, interest costs have also surpassed spending on Medicare, despite the US having the largest defense budget in the world. This situation is deemed unsustainable by many experts.