Interest on the $38.8 trillion national debt has tripled since 2020, and it already costs taxpayers more than defense and Medicaid

6 hours ago 1

The United States is now paying nearly $970 billion a year just to service the interest on its $38.8 trillion national debt—a figure that has nearly tripled since 2020 and already exceeds what the federal government spends on national defense or Medicaid, according to a February analysis by the Committee for a Responsible Federal Budget (CRFB).

For many Americans, the number barely registers. But budget experts warn it represents one of the most consequential—and least discussed—fiscal emergencies in the country’s history.

The rapid climb didn’t happen overnight. Interest costs have surged owing to a one-two punch: The federal debt load has ballooned by trillions, while interest rates climbed sharply from near-zero post-pandemic lows. As a share of the economy, interest costs have doubled from 1.6% of GDP in 2021 to a record 3.2% in 2025. Today, the government already spends more on debt interest than on Medicaid or the entire national defense budget, programs Americans viscerally feel and politically fight over. Yet the interest line item draws comparatively little outrage.