As of August 5, the Treasury Department reported total federal debt of approximately $39.83 trillion. The CBO projects net interest payments of approximately $1.04 trillion in fiscal year 2026, equivalent to $2.85 billion per day, representing about 14% of the $7.4 trillion in federal spending and exceeding the $918 billion in defense spending; it also represents about 55% of the $1.9 trillion fiscal deficit. With a large amount of low-interest Treasury bonds maturing, approximately $10.2 trillion will roll over in the coming year, while the 30-year yield rose to 5.27% at the end of July. As older debt is gradually replaced by higher-interest new debt, average financing costs will continue to rise.
