U.S. Interest Costs to Surpass Defense Spending, Sparking Fiscal Concerns

As the U.S. grapples with rising interest payments that will soon exceed defense budget, experts warn of the long-term fiscal implications.

Soaring interest costs in the U.S. are set to exceed all defense spending for the first time, with projections showing a widening gap over the next decade.
Interest payments on the debt are forecasted to become the largest part of the federal budget, surpassing Medicaid, Medicare, and eventually Social Security.
The Congressional Budget Office projects that by 2034, annual interest costs will reach $1.6 trillion, 45% higher than projected defense spending.
Experts, including Ken Griffin, emphasize the irresponsibility of current borrowing practices, warning of the burden on future generations.
Proposals for a bipartisan fiscal commission to address the crisis and stabilize the debt-to-GDP ratio have been put forward, amid calls for urgent action.