U.S. Treasury is paying $3 billion a day in interest on national debt, says the CBO—having spent $10 billion to prop up the currency of its top lender

According to the Congressional Budget Office (CBO), the U.S. government's $40 trillion national debt is currently costing the Treasury over $3 billion each day in interest payments, according to their August budget update. From October 2025 to July 2026, net interest on public debt amounted to $963 billion, which breaks down to roughly $3.18 billion daily over the 303-day period.

Interest payments on the debt have risen by 14% compared to the same timeframe last year due to the increased debt size and higher long-term interest rates. Despite short-term rate declines partially offsetting the overall increase, debt hawks argue that the growing fiscal deficit signals a problematic trajectory for fiscal responsibility.

The U.S. debt-to-GDP ratio stands at 122%, a level that could potentially lead to higher risk premiums demanded by lenders. Treasury Secretary Scott Bessent recently intervened to stabilize the Japanese yen, backing the currency to the tune of $5 to $10 billion, in an effort to preserve regional financial stability. The move was motivated by the fact that Japan is the largest holder of U.S. debt, currently owning $1.14 trillion in U.S. Treasury securities.