US national debt nears $40 trillion as interest tops $1.2 trillion
Why it matters: Annual interest costs now exceed defense spending, adding pressure on Congress and the White House to confront deficits.
The US national debt is expected to cross $40 trillion as soon as this week, a record milestone that economists and budget watchdogs warn is becoming harder to ignore. PBS reported that interest payments alone now cost taxpayers more than $1.2 trillion a year, citing Federal Reserve data, putting debt service above national defense spending. The debt climbed sharply during the 2009 recession and again in 2020 during the COVID crisis, but it has also kept rising outside those shocks. Carolyn Bourdeaux of the Concord Coalition warned that if borrowing keeps accelerating, the US could eventually face a serious fiscal crisis marked by higher interest rates or inflation. The report said neither Congress nor the White House is addressing the core drivers.