US Borrowing Hits $43.5B Weekly as Debt Interest Heads Toward $1 Trillion in 2026

‎The United States entered fiscal year 2026 with significant financial pressure, based on new projections released by the Congressional Budget Office (CBO). Early data indicates that government borrowing remained extremely high during the first four months of the fiscal calendar.

‎

The United States borrowed $696 billion in the first four months of FY2026, with debt interest payments projected to exceed $1 trillion for the year as national debt surpasses $38.5 trillion.

‎Andrew Caballero-Reynolds/AFP/Getty Images

‎

‎According to the CBO’s latest report, covering the first third of FY2026—which began in October—the federal government ran a deficit that required borrowing $696 billion. January alone accounted for $94 billion of that figure. When averaged across the 16 weeks within those four months, borrowing reached roughly $43.5 billion each week.

‎

‎Government spending continues to exceed revenue generation, and the financial strain is worsened by rising interest payments required to maintain existing debt. Total U.S. national debt has now climbed beyond $38.5 trillion, while the country’s gross domestic product stands near $31 trillion, based on data from the Federal Reserve Bank of St. Louis.

‎

‎Treasury figures show that by January 31, interest payments had already totaled $427 billion. If that pace continues across the full fiscal year—and considering that additional borrowing will require further interest payments—the U.S. could spend about $1 trillion annually just to service its debt. The U.S. first crossed this milestone in FY2024, when interest costs reached $1.13 trillion, rising further to $1.22 trillion in FY2025.

‎

‎Maya MacGuineas, president of the Committee for a Responsible Federal Budget, warned that the current pace of borrowing could lead to another massive deficit year. She noted that even though FY2026 is only one-third complete, borrowing remains constant and could result in a deficit of $1.8 trillion or more if trends continue.

‎

‎MacGuineas also highlighted that national debt is approaching historic highs relative to the size of the U.S. economy. She stressed that unless lawmakers act together to address what she described as unsustainable borrowing, Americans will ultimately face higher costs, especially if corrective measures are delayed.

‎

‎Despite these large figures and repeated warnings from fiscal watchdogs, financial markets and many economists remain relatively calm about the U.S. government’s financial position. Typically, concerns would appear first in the bond market. Rising yields could signal investors demanding higher returns due to increased risk, while falling yields could indicate bond supply exceeding investor demand.

‎

‎Neither signal has strongly materialized. At the time of reporting, 30-year Treasury yields were around 4.8%, slightly higher than late last year but still broadly consistent with much of 2025. Ten-year Treasury yields have followed a similar pattern, hovering near 4.2% since last spring.

‎

‎There has also been speculation that foreign investors might use their holdings of U.S. debt as leverage in response to geopolitical tensions or policy disagreements. However, many economists believe outcomes would likely be less severe. Possible responses include financial repression, which would require institutions to hold more government debt to maintain demand. Another option could involve allowing inflation to rise modestly, which would reduce the real value of the debt, though it would hurt consumers. Quantitative easing could also be used, expanding money supply and potentially lowering the real cost of borrowing.

‎

‎These potential policy tools may be one reason investors still show confidence in the U.S., as the country is seen as relatively capable of managing a debt crisis if one emerges.

‎

‎However, if economic growth fails to improve the debt-to-GDP ratio, the consequences could be challenging. Increasing amounts of government revenue would be redirected toward servicing debt. Bridgewater Associates founder Ray Dalio has repeatedly warned about this risk, comparing growing debt obligations to an economic “heart attack.”

‎

‎In previous interviews and social media posts, including discussions with Fortune’s Diane Brady, Dalio emphasized that the U.S. is spending far more than it collects. In a Fox Business appearance last year, he said the country is spending roughly 40% more than its income and described debt service costs as gradually reducing purchasing power, similar to plaque restricting blood flow in arteries.