CBO Projects Over $20 Trillion in U.S. Debt Interest Costs Over the Next Decade

The Congressional Budget Office (CBO) this week released its projections for federal revenue and spending covering the period from 2026 through 2036.

When it comes to the U.S. budget, economists have long grown accustomed to numbers that boggle the mind: the nation currently carries $40 trillion in debt, yet the fiscal crisis that "debt hawks" have predicted for years has not truly materialized.

However, with the Social Security trust fund projected to run dry in a little over seven years and the Medicare fund expected to become insolvent in six and a half years, budget issues are increasingly drawing the attention of politicians and the public alike.

Regardless of which party holds power, the CBO's projections for government spending are likely only to intensify these concerns.

According to the agency's report, between 2026 and 2036, the United States will spend $20.1 trillion on interest payments for its national debt.

This figure covers both the current $40 trillion debt burden and the new debt that will steadily accumulate over the coming decade due to fiscal deficits.

The CBO notes that in 2026, the U.S. Treasury will need to pay $1.2 trillion in interest on the national debt; by 2036, that figure will rise to nearly $2.5 trillion per year, or $200 billion per month.

To put that number in context: by 2036, projected U.S. defense spending is expected to reach $1.1 trillion, while the outlay for servicing debt interest will be roughly double that amount.

Despite pressure to reduce deficits—such as proposals to set a budget deficit target of 3% of gross domestic product (GDP), rather than the current 6% to 7%—the CBO expects the fiscal gap to widen further over the next decade.

The U.S. Treasury has confirmed a deficit of $2 trillion for fiscal year 2026.

The CBO projects that by 2036, that deficit will expand to more than $3 trillion.

From this year through the next decade, the cumulative total budget deficit will reach $25.6 trillion.

Rising social welfare spending is a major factor driving the persistent need for borrowing.

Like many Western countries, the United States faces an aging population; this means more and more people will exit the labor force and likely come to rely on the nation's Social Security and medical services.

According to the CBO's report, such spending amounted to $3.7 trillion in 2026; by 2036, that figure is projected to reach $6.1 trillion.