What the federal interest bill measures
Interest paid by the federal government to individuals, businesses, the Federal Reserve and foreign holders of Treasury debt, from the Bureau of Economic Analysis’ national accounts. Each quarter is shown as a seasonally adjusted annual rate, in trillions of dollars. Interest one part of the government pays another, such as on Social Security trust fund holdings, is not included, so this is close to what budget experts call net interest.
How to read this chart
Interest costs rose steadily through the high-rate 1980s, then stayed roughly flat for almost two decades as falling interest rates offset a growing debt. The sharp climb since 2022 comes from both factors at once: a much larger debt after the pandemic and much higher rates on the new bills, notes and bonds the Treasury sells to refinance it. The numbers are not adjusted for inflation.
The latest reading in context
- At $1.33T, the latest reading is above its 5-year average of $1.02T and above its 10-year average of $0.78T.
- That is higher than 100% of all quarterly readings since Q1 1947 – near the top of its historical range.
- Direction: up 3.8% over the past quarter; up 6.1% over the past six months; up 7.3% over the past year.
- The highest value on record is $1.33T (Q3 2026, this year); the lowest is $0.01T (Q1 1947, 79 years ago).
- The full history spans 12 US recessions, shaded grey on the chart.
Why it matters
Interest is the one part of the budget that Congress does not vote on each year: it must be paid. When interest costs grow faster than the economy, they crowd out other spending or require more borrowing, which raises interest costs further. Federal net interest outlays now exceed spending on national defense, a milestone that has made the cost of the debt a central budget issue.
What moves the federal interest bill
- The size of the debt held by the public
- Interest rates on Treasury bills, notes and bonds, especially short-term bills that reprice quickly
- Inflation, which raises payments on inflation-protected TIPS
- Federal Reserve holdings: interest the Fed receives is largely sent back to the Treasury
Key moments in its history
- 1980sInterest costs tripled as rates and deficits soared.
- 2000s–2010sStayed fairly flat as falling rates offset rising debt.
- Late 2023Passed $1 trillion at an annual rate for the first time.
- 2024Net interest outlays exceeded defense spending.
Federal Interest Payments data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | $0.90T | $1.33T | $0.51T |
| 2010s | $0.46T | $0.59T | $0.36T |
| 2000s | $0.35T | $0.41T | $0.29T |
| 1990s | $0.33T | $0.37T | $0.28T |
| 1980s | $0.19T | $0.27T | $0.10T |
| 1970s | $0.05T | $0.10T | $0.03T |
| 1960s | $0.02T | $0.03T | $0.01T |
| 1950s | $0.01T | $0.01T | $0.01T |
| 1940s | $0.01T | $0.01T | $0.01T |
Last 12 quarters
| Period | Value | Change |
|---|---|---|
| Q3 2026 | $1.33T | +3.8% |
| Q2 2026 | $1.28T | +2.1% |
| Q1 2026 | $1.25T | −1.0% |
| Q4 2025 | $1.27T | +2.2% |
| Q3 2025 | $1.24T | +3.4% |
| Q2 2025 | $1.20T | +2.3% |
| Q1 2025 | $1.17T | +0.4% |
| Q4 2024 | $1.17T | +1.9% |
| Q3 2024 | $1.15T | +4.5% |
| Q2 2024 | $1.10T | +3.1% |
| Q1 2024 | $1.06T | +3.5% |
| Q4 2023 | $1.03T | +6.3% |
Quarterly values. Decade figures are averages of the quarterly values in each decade. The complete history is available as a CSV file.
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Federal Interest Payments: questions and answers
How much interest does the US pay on its debt?
The latest figure is shown at the top of this page as an annual rate. In the federal budget, net interest for fiscal year 2024 was about $880 billion; the national-accounts measure charted here is somewhat broader.
Why are interest payments rising so fast?
Because the debt is larger and the Treasury is refinancing maturing low-rate debt from the 2010s at today's higher rates. About a fifth of the debt is in short-term bills, which reprice within months.
Who receives the interest?
US investors, pension funds, banks, mutual funds and foreign holders of Treasury securities, plus the Federal Reserve, which returns most of its earnings to the Treasury.
Where does the data on this chart come from?
From the U.S. Bureau of Economic Analysis. ChartWidgets downloads the series (A091RC1Q027SBEA) from FRED, the Federal Reserve Bank of St. Louis database, and checks for new releases every day. The last update was on November 1, 2026.