US Annual Interest Expense Hits New Record High
US federal interest expenses have reached a record 18.5% of government revenue, surpassing the 1991 peak. Rising treasury yields and structural debt growth are driving these costs to historic highs.
Why it matters
The rising cost of servicing national debt limits fiscal flexibility and is a major concern for long-term economic stability.
The US annual interest expense has climbed to a record 18.5% of federal government revenue, according to an August 2026 breakdown shared by Kobeissi Letter's post on X .
This is the new US interest record, sitting above the previous high of 18.4%, a mark that had stood since 1991.
Data from the Peterson Foundation's cost tracker , which follows Congressional Budget Office figures, confirms federal payments reached 18.5 percent of revenue by the end of last year, exceeding the 1991 peak.
This (The Kobeissi Letter) also covered this news in the tweet posted on X, noting that the US annual expense has more than quadrupled over the last four years as servicing costs surged.
The pace of this shift is unusual. The costs that once made up a small share of federal spending now compete with the government's largest budget lines. Here is the comparison Kobeissi highlighted:
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