{
  "id": 1745840,
  "title": "America's debt is getting more expensive",
  "url": "https://urgent.news/2026/08/18/americas-debt-is-getting-more-expensive",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-18T16:02:34.000Z",
  "source": {
    "name": "Axios",
    "slug": "axios",
    "url": "https://www.axios.com/2026/08/18/debt-revenue-interest-defense-spending"
  },
  "original_language": "en",
  "account": "The cost of borrowing for governments worldwide is surging as they already carry massive debt loads. In the United States, the annualized interest expense has skyrocketed to $1.2 trillion, surpassing defense spending. Economists at Charles Schwab explain that the government routinely refinances portions of its debt at prevailing market rates, causing the overall interest rate paid on the country's total debt to gradually increase in a high-rate environment.\n\nThe consequences are a vicious cycle: higher interest expenses strain the budget, necessitating more borrowing to cover the growing debt. Currently, debt held by the U.S. public stands at 101% of the nation's Gross Domestic Product (GDP), according to the Congressional Budget Office. This figure is projected to climb to 120% within a decade.\n\nDespite the current favorable economic conditions, the situation is poised to worsen if a recession were to hit. During a downturn, tax revenues would likely decline, and government spending would increase to stimulate the economy, forcing Washington to borrow even more. Investors recently witnessed record auction yields on 10-year notes since 2007 and on 30-year bonds since 2001, signaling the mounting challenge of higher borrowing costs.",
  "summary": "Governments around the world are entering a new era of higher borrowing costs already deeply indebted . More revenue will go toward interest payments as old debt gets refinanced at today's higher rates. America is already watching that dynamic play out: Annualized interest costs have reached $1.2 trillion, exceeding defense spending. What they're saying: \"The government consistently rolls over…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}