U.S. Debt Interest Costs Near $3 Billion a Day, CBO Says

The US Treasury Department has paid $628 billion in net interest this fiscal year to service the national debt, according to the Congressional Budget Office.

The CBO said rising debt levels and higher long-term interest rates continued to increase borrowing costs.

The report details federal government revenues and expenditures for the fiscal year that began in October, Eleanor Pringle reported for Fortune.

Although the CBO said the budget deficit so far this year is smaller than during the same period a year earlier, the government is still spending billions of dollars daily on debt-servicing costs.

The report showed the government’s largest expenditures included $953 billion for Social Security benefits, $588 billion for Medicare, and $409 billion for Medicaid during the first seven months of the fiscal year.

Net interest payments on the public debt totaled $628 billion during the same period, exceeding spending on both Medicare and Medicaid.

Based on the 212 days between October and April, Treasury interest payments averaged roughly $2.96 billion per day.

The CBO said rising debt levels and higher long-term interest rates continued to increase borrowing costs.

“Outlays for net interest on the public debt rose by $41 billion (or 7%) because the debt was larger than it was in the first seven months of fiscal year 2025 and because of higher long-term interest rates,” the report stated.

“Declines in short-term interest rates partially mitigated the overall rise in interest payments.”