🇺🇸 The U. — Venture Capital

🇺🇸 The U.S. is borrowing money to pay interest on its debt

Interest on federal debt is expected to cost $1.039 trillion in 2026, or roughly $2.85 billion every day. That's around 14% of the federal budget and more than annual defense spending.

The national debt has now crossed $40 trillion, while older debt is being refinanced at much higher rates. The 30-year Treasury yield recently hit 5.27%, its highest level since 2007.

Interest payments already equal more than half of the federal deficit. The government finances that deficit with more borrowing, while higher rates make each refinancing cycle increasingly expensive.

And this doesn't stay in Washington. Higher Treasury yields feed directly into the cost of mortgages, business loans, and consumer credit across the economy.

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