Interest costs on the national debt just surpassed spending on defense, Medicare
Story by Megan Henney •
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Interest payments on the nation’s ballooning debt just eclipsed spending on defense and Medicare, worrying policy experts who have warned this threatens to undermine U.S. economic stability.
In the first seven months of fiscal year 2024, which began in October, spending on net interest surged to $514 billion, surpassing spending on both national defense ($498 billion) and Medicare ($465 billion). In fact, interest costs have topped spending on veterans, education and transportation combined.
"Rising debt will continue to put upward pressure on interest rates," the Committee for a Responsible Federal Budget (CRFB), a nonpartisan group that advocates for lowering the national deficit, said in a statement. "Without reforms to reduce the debt and interest, interest costs will keep rising, crowd out spending on other priorities and burden future generations."
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