The interest payments on America’s national debt have exceeded $1 trillion U.S. for the first time.
According to the U.S. Treasury Department, the interest payment milestone was reached as the national debt in America hit $35.3 trillion U.S.
The U.S. government is subject to prevailing interest rates, which are currently at their highest level in 23 years.
So far in 2024, the U.S. government has spent 30% more servicing the interest on the national debt than a year ago.
The Treasury Department said that the federal government in Washington, D.C. is on track to spend $1.158 trillion U.S. in interest payments this calendar year.
Interest on the debt is now the government’s third biggest expense after Social Security and Medicare.
In addition to the national debt, lawmakers in Washington, D.C. are grappling with a rising budget deficit that is nearing $2 trillion U.S.
In August, the budget deficit stood at $1.9 trillion U.S., a 24% increase from the same time last year.
Some relief is expected in coming months as the U.S. Federal Reserve is widely expected to begin lowering interest rates at its policy meeting on Sept. 18.
