Interest payments on the national debt top $1 trillion

The U.S. government has for the first time laid out more than $1 trillion in gross interest payments on its national debt, according to a report by CNBC. Citing a Thursday report by the U.S. Treasury, CNBC said the payments, currently at $1.049 trillion so far in fiscal year 2024, are projected to hit $1.158 trillion by the end of the fiscal year on Sept. 30. That’s a 30 percent increase in gross interest payments from last year. Subtracting the interest the government earns on its investments, the government has paid $843 billion in net interest. The increase came during a surge in the U.S. budget deficit, which is nearing $2 trillion.

The Federal Reserve is expected to lower its benchmark interest rates this week, likely by a quarter of a percentage point. But Treasury yields have fallen recently in anticipation of further rate cuts.

How much has the government spent on other items so far? Social Security and Medicare spending still top the list at $1.3 trillion and $850 billion, respectively. National defense came just behind national interest payments, at $798 billion so far.

Dig deeper: Read David Bahnsen’s breakdown of the causes contributing to inflation.