‘Uncharted territory’: The $40 trillion U.S. national debt just got uglier as interest payments rise to $1.25 trillion a year

Scott Bessent speaks behind a podium and in front of an American flag. (Credit: Chip Somodevilla—Getty Images)

The federal interest burden has reached a new height, exceeding even the 1991 record, but analysts warn the risks associated with servicing the ever-growing national debt today are much higher than they were 35 years ago, analysts warn.

A recent analysis from investment management firm Doubleline noted that in 2025, the federal net interest payment on the U.S.’s now-$40 trillion national debt reached 18.5% of revenue, surpassing 1991’s record 18.4%. That means the U.S. is collecting nearly 19% of all taxes and revenue just to pay off interest on its ballooning debt, equivalent to $1.25 trillion—more than the entire 2026 defense budget.