The calendar year may have a few weeks left to tick off, but as far as the government’s budget is concerned, we’re in fiscal 2026. And in a matter of weeks, the Treasury has already paid out a 12-figure sum to service the nation’s debt. Unlike the tax and calendar year, the government’s financial calendar runs to the end of September. According to Treasury data, in the nine weeks since, it has spent $104 billion in interest on its $38 trillion borrowing burden. That’s more than $11 billion a week, and already represents 15% of federal spending in the current fiscal year.
Economists may be hopeful that the Treasury would make some New (fiscal) Year’s resolutions: perhaps either scaling back its borrowing, and the additional interest rates on that debt as a result, or drumming up some meaningful revenue to offset the costs.
President Trump and his cabinet have been discussing debt more meaningfully in this administration. While economists say some of their methods are “peculiar,” the Oval Office has nevertheless devised some moneymaking schemes, like tariffs, estimated to offset $3 trillion through fiscal year 2035. This is, unfortunately, $1 trillion lower than previous estimates from the Congressional Budget Office earlier this year.
