U.S. Debt Interest Hits Record $616B — $2T by 2036!

U.S. interest payments on public debt have reached a record $616 billion, and the trajectory is accelerating: costs are projected to surpass $2 trillion annually by 2036. That figure would make debt servicing one of the single largest line items in the federal budget, crowding out discretionary spending on defence, infrastructure, and social programmes.

The milestone arrives as the Federal Reserve holds rates at elevated levels, compounding the cost of rolling over existing debt at higher yields. Each successive Treasury auction locks in today's rates for years, meaning the $2 trillion projection assumes no further rate shock — the real ceiling could be higher.