National debt interest consumes record 19% of federal revenue as Treasury yields surge
By
Nick Lichtenberg
An everything bagel for the brain. Substantive, layered, well-seasoned.
Summary
The federal government is spending a record 19% of all federal revenue on interest payments for the national debt, according to the Committee for a Responsible Federal Budget (CRFB). Interest costs now consume 3.25% of GDP, surpassing spending on Medicaid, national defense, and all non-defense discretionary programs combined. With the 30-year Treasury yield surging past 5.19% — its highest level in nearly 20 years — fiscal watchdogs warn the situation could deteriorate further if yields remain elevated.
Key quotes
· 3 pulledInterest costs consumed a record 3.25% of GDP and roughly 19% of all federal revenue in fiscal year 2025.
The federal government already spends more on debt interest than on Medicaid, national defense, or all non-defense discretionary programs combined.
If Treasury yields remain elevated at current levels — roughly 55 basis points higher than projected — what was already a crisis could turn into something far worse.
You might also wanna read
U.S. National Debt Exceeds 100% of GDP for First Time Since World War II
The U.S. national debt has surpassed 100% of GDP for the first time since World War II, reaching $31.265 trillion in publicly held debt agai
wsj.com·1mo ago
US national debt reaches record $39 trillion amid war in Iran
The U.S. national debt has surpassed $39 trillion for the first time, reaching the milestone just weeks into the U.S.-Israeli war in Iran. T
apnews.com·2mo ago
U.S. National Debt Surpasses 100% of GDP Under Trump Administration
The article argues that America's national debt has surpassed 100% of GDP under Donald Trump's presidency, driven by tax cuts favoring the w
Rolling Stone·24d ago
U.S. National Debt Reaches Record $38 Trillion During Federal Shutdown
The U.S. government's gross national debt has reached a record $38 trillion during a federal shutdown, marking the fastest accumulation of d
apnews.com·7mo agoUS national debt reaches a record $37T, the Treasury Department reports
U.S. Federal Budget Deficit Unchanged in Fiscal 2025 Despite Tariff Revenue Increase
The U.S. federal budget remained grim in fiscal year 2025 despite a historic rise in tariff revenue, with the deficit staying the same as th
wsj.com·7mo ago