Staff Reports
The Government Accountability Office just slapped a big red warning label on Washington. Its new report shows net interest costs for fiscal year 2025 topped $970 billion — more than we spent on national defense and nearly as much as Medicare. If that doesn’t get lawmakers off the couch, nothing will.
GAO report: Interest payments now bigger than defense
On June 11, 2026, GAO released its annual fiscal-health report and the numbers are stark. Net interest on the national debt reached more than $970 billion, equal to about 3.2 percent of GDP. Debt held by the public hit $30.2 trillion, roughly 99 percent of GDP. GAO warns that, under current policy, debt and interest costs will climb much higher, and interest could become the fastest-growing part of the budget.
Why interest is exploding — and why it matters
Two things pushed interest costs up: big past deficits and higher market interest rates. More borrowing means a bigger stock of debt, and higher rates make that stock more expensive to service. That creates a vicious loop: borrow more, pay more interest, borrow more to cover the interest. GAO’s Acting Comptroller General put it plainly: “The rising debt is increasing the risk of a fiscal crisis, and it is time to take action.” This is not just a headline — it drives up mortgage and business loans and shrinks room for emergencies.
What this squeeze looks like for everyday priorities
When interest eats a bigger slice of the budget, something else gets squeezed: defense, health care, infrastructure, or benefits. GAO projects that by 2044 interest could surpass Social Security, and by mid-century interest will claim an even larger share of GDP unless policy changes. Translation: future Congresses will face brutal choices or higher taxes. Voters who care about a strong military and stable economy should not shrug this off.
Wake-up call for Congress and the White House
GAO didn’t hand Congress a shopping list of fixes, but it did urge a comprehensive fiscal strategy — spending reforms, tax reform, trimming waste, and smarter debt rules. Republicans should lead on this and force real choices, not just rhetorical gymnasts about spending. Democrats can either help or keep ducking responsibility. Either way, if Washington keeps treating the debt like background noise, the bill will get louder and costlier for every American.
