Source: Fortune
Summary
The U.S. Treasury is facing a growing debt burden, with interest payments on the $39 trillion national debt reaching $529 billion in the first six months of the fiscal year. This is a 7% increase from the same period last year. The Congressional Budget Office (CBO) reports that the government paid $88 billion in interest payments per month, which is comparable to the combined spending on the Department of Defense and Department of Education. The CBO attributes the increase to a larger debt and higher long-term interest rates.
Our Reading
The numbers tell one story.
The U.S. government’s debt service payments are now on par with its spending on the Department of Defense and Department of Education. The CBO reports a $33 billion increase in interest payments from last year to this year. The government’s efforts to rebalance the books, including President Trump’s tariffs, have yielded a $223 billion increase in receipts, but outlays have also increased, albeit at a slower pace.
The strategy enters a familiar phase: the government is borrowing more to pay for its debt, with a deficit of $1.2 trillion for the first six months of the fiscal year.
And the interest keeps piling up, like a slow-moving debt avalanche.
Author: Evan Null
