The federal government added roughly $1.8 trillion to the now $38 trillion national debt in fiscal year 2025. While net interest on the debt totaled $970 billion, according to the Congressional Budget Office, the federal government’s net interest payments exceeded $1 trillion for the first time.
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Budget watchdogs are sounding the alarm as the U.S. hit an unfortunate fiscal milestone in fiscal year 2025: government spending on debt interest payments alone topped $1 trillion this year.
The federal government added roughly $1.8 trillion to the now $38 trillion national debt in fiscal year 2025. While net interest on the debt totaled $970 billion, according to the Congressional Budget Office, the federal government’s net interest payments exceeded $1 trillion for the first time.
That’s more than the U.S. spends on national defense, almost as much as it spends on Medicare, and about two-thirds of what it spends on Social Security benefits.
