US federal debt interest hits record high in FY2025 H1

In the first six months of Fiscal Year 2025, the United States paid $623 billion in interest on its federal debt, a 7% year‑over‑year increase and the highest amount ever recorded for this period. The rise outpaces the interest costs incurred during the 2021 pandemic response, despite ongoing deficit reduction efforts. Treasury officials warned that the growing debt service burden could pressure future budgeting and fiscal policy decisions. The spike reflects higher borrowing rates and the cumulative effect of expanding debt levels since the pandemic.