U.S. debt interest burden may soon outweigh defense spending

According to the U.S. Treasury Department data, 23 cents are currently paid for every dollar of federal taxes paid, which has risen sharply due to high interest rates and growing deficits. Interest expenses are the third largest federal expenditure category after Social Security and Healthcare. With debt exceeding $34 trillion and borrowing costs continue to rise, Treasury Secretary Yellen warned that interest expenses could outweigh defense spending within a decade. The Congressional Budget Office expects net interest spending could exceed $3 trillion by 2034, raising concerns about fiscal sustainability and its potential impact on public investment.