‘Uncharted territory’: The $40 trillion U.S. national debt just got uglier as interest payments rise to $1.25 trillion a year

The federal interest bill hit a record 18.5% of revenue in 2025—about $1.25 trillion, more than the entire 2026 defense budget.
Interest costs have tripled since 2015 and could consume roughly 25% of revenue by 2036, squeezing spending on infrastructure, education and other priorities.
Big tech’s massive bond borrowing for AI (about $225B in H1 2026) is crowding out Treasuries and pushing yields up, prompting the Treasury to double long‑bond buybacks to steady the market.