Continued deficit spending in the U.S. may cause interest payments to soon outpace national defense spending.
U.S. debt is now at a record high of $31.38 trillion . In mid-2022, the interest payments on the debt were just under $600 billion dollars according to the Committee for a Responsible Federal Budget.
But the fiscal watchdogs forecast that those payments will eclipse the combined cost of Medicaid, food stamps, and Supplemental Security Income by the end of this year. They may even exceed defense spending as a major budget component either in this year or in 2026.
The timeline for that depends largely on interest rates.
The budget is a flashpoint not only between Democrats and Republicans but also within the GOP. Some hardline conservatives are refusing to pass a new budget until more spending concessions are made.