Interest on the National Debt Now Costs More Than Defense Spending

For the first time in U.S. history, the federal government is spending more on interest payments than on national defense. Annualized interest costs have reached roughly $1.2 trillion, surpassing about $1.16 trillion for defense. The cost of past borrowing now exceeds the cost of protecting the nation.

This is not a theoretical warning. It is a budget reality.

How the U.S. Reached This Point

Decades of persistent deficits have steadily increased the national debt. For years, low interest rates masked the true cost of that debt. That era is over.

As rates normalized, interest expenses surged. Unlike most federal programs, interest payments are mandatory. They cannot be delayed, trimmed, or negotiated away. Every dollar spent servicing debt is a dollar unavailable for national security, infrastructure, or taxpayer relief.

The result is a budget increasingly consumed by past decisions rather than current priorities.

Why Cutting Spending Matters

Interest costs rise for one simple reason: the federal government keeps borrowing. Reducing deficits is the only durable way to slow the growth of interest payments, and that requires spending restraint.

Raising taxes does not solve this problem. Higher taxes tend to fuel higher spending, not fiscal discipline. Without reforms, new revenue is quickly absorbed, and borrowing continues.

Spending control works differently. Slower spending growth reduces annual deficits. Smaller deficits mean less new debt. Less debt means lower interest costs over time.

The Choice Ahead

The federal budget is sending a clear signal. Interest is crowding out core government functions. Defense is only the first major category to be overtaken. Others will follow if current trends continue.

Policymakers face a clear choice:

• Rein in spending and restore fiscal balance.

• Or accept a future where debt service dominates the budget and limits every other national priority.

  
  

Cutting spending is not optional. It is the prerequisite for reducing interest costs and regaining control of the federal budget.