US Debt: Interest Payments Exceed $100 Billion by 2026
US National Debt: $104 Billion in Interest Paid in First Nine Weeks of Fiscal 2026
WASHINGTON D.C. - The US government has already spent a staggering $104 billion on interest payments for its $38 trillion national debt in the first nine weeks of fiscal year 2026, which began October 1st. this equates to over $11 billion per week and represents 15% of all federal spending so far this fiscal year. the figures, released by the Treasury Department, highlight the growing burden of debt servicing and the challenges facing policymakers as they navigate the nation’s finances.
The situation is prompting economists to call for action, either through reduced borrowing, increased revenue, or a combination of both. The Trump administration is exploring revenue-generating strategies, notably tariffs, but the potential impact is facing scrutiny.
Tariff Revenue: A Mixed Bag
The administration estimates tariffs could generate $3 trillion in revenue through fiscal year 2035. Though, recent projections from the Congressional Budget Office (CBO) suggest this figure is highly likely closer to $2 trillion – a $1 trillion reduction from earlier estimates.
furthermore,President Trump’s pledge to distribute a $2,000 “dividend” from tariff revenue to individuals could substantially offset any gains. The Committee for a Responsible Federal Budget (CRFB) estimates this dividend program would cost $600 billion annually.
Here’s a breakdown of potential tariff revenue and associated costs:
| Revenue Source | Estimated annual Revenue | Potential Offset/Cost |
|---|---|---|
| Tariff Revenue (Current Estimates) | $300 – $400 billion | N/A |
| Tariff Revenue (Trump Administration Estimate – FY2035) | Variable | $3 trillion (over FY2035) |
| Tariff Revenue (CBO Estimate – FY2035) | Variable | $2 trillion (over FY2035) |
| Tariff Dividend ($2,000/person) | N/A | $600 billion annually |
Borrowing is Increasing
despite efforts to boost revenue, government borrowing is actually increasing. The Peterson Foundation recently reported that the government plans to issue $158 billion more in debt during the first half of fiscal year 2026 compared to the same period last year. This trend underscores the challenges of managing the national debt and the potential for further increases in interest payments.
The rapid accumulation of interest payments on the national debt is a serious concern.While tariff revenue offers a potential offset, the proposed dividend program significantly diminishes its effectiveness. The increase in projected borrowing suggests that current fiscal policies are not sufficient to stabilize the debt. The situation demands a comprehensive approach that addresses both spending and revenue, and a realistic assessment of the potential benefits of trade policies. Ignoring this issue will only led to a more precarious fiscal future.
– victoriasterling
Deutsche Bank, in its summary of global economic forecasts for 2026, identifies debt as a key risk factor. The escalating debt burden could constrain future economic growth and limit the government’s ability to respond to unforeseen crises.
Sources:
* [CRFB – CBO’s New Projections Show $1 Trillion Less Tariff savings](https://www.crfb.org/blogs/cbos-new-projections-show-1-trillion-less-tariff-savings#:~:text=Updated%20projections%20from%20the%20Congressional,%244.0%20trillion%20projected