"The calendar year may have a few weeks left to tick off, but as far as the government's budget is concerned, we're in fiscal 2026. And in a matter of weeks, the Treasury has already paid out a 12-figure sum to service the nation's debt. Unlike the tax and calendar year, the government's financial calendar runs to the end of September. According to Treasury data, in the nine weeks since, it has spent $104 billion in interest on its $38 trillion borrowing burden."
"President Trump and his cabinet have been discussing debt more meaningfully in this administration. While economists say some of their methods are "peculiar," the Oval Office has nevertheless devised some money-making schemes, like tariffs, estimated to offset $3 trillion through fiscal year 2035. This is, unfortunately, is $1 trillion lower than previous estimates from the Congressional Budget Office (CBO) earlier this year."
Federal fiscal year 2026 began in October and the Treasury paid $104 billion in interest over nine weeks on a $38 trillion debt, averaging over $11 billion weekly and equaling 15% of current federal spending. The administration proposes tariffs estimated to raise $3 trillion through fiscal 2035, which is $1 trillion below earlier CBO estimates. Annual tariff duties are projected at $300–$400 billion, a fraction of anticipated 2025 interest payments exceeding $1 trillion. A proposed $2,000 per-person tariff dividend would cost about $600 billion annually according to the CRFB, potentially offsetting little of the borrowing.
Read at Fortune
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