Source: Fortune
Summary
The U.S. Treasury has paid $628 billion in net interest this year to service its borrowing, according to the Congressional Budget Office (CBO). The CBO’s latest monthly budget update shows the government’s largest outlays, including $953 billion for Social Security benefits, $588 billion for Medicare, and $409 billion for Medicaid. The Treasury’s interest payments have averaged $2.96 billion per day, with the interest payment figure rising due to a larger debt and higher long-term interest rates.
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The numbers tell one story. The Treasury’s daily interest payments of $2.96 billion are a stark reminder of the government’s growing debt burden. The CBO’s report highlights the increasing costs of servicing this debt, with net interest payments rising by $41 billion compared to the same period last year. Meanwhile, the government’s revenue has increased, partly due to a 220% uplift in duties revenue from Trump’s tariff agenda. The CBO’s director, Phil Swagel, emphasizes the importance of productivity and policies impacting labor supply in shaping the agency’s projections.
One thing is certain: the government’s addiction to tariffs is yielding significant revenue, and it’s unlikely to change anytime soon.
Author: Evan Null
