U.S. interest payments surpass 2023 defense budget

A new fiscal paradigm is emerging in the U.S. as the government’s interest payments outpace its defense budget for the year 2023.

Data sourced from the Federal Reserve reveals an unprecedented shift with $969.9 billion spent on interest payments in Q2 2023, dwarfing the President’s FY 2023 budget request for the Department of Defense (DoD) of $773 billion.