CBO Warns 2025 Debt Interest Costs to Exceed World War II Levels

The cost to service the US government’s burgeoning debt load will hit a record high next year and then keep on climbing, the Congressional Budget Office warned on Wednesday.

Net interest payments will climb to 3.1% of gross domestic product next year, the highest level in records going back to 1940, and then go on to hit 3.9% in 2034, the CBO said in its latest outlook for the federal budget.

“Net interest costs are a major contributor to the deficit, and their growth is equal to about three-quarters of the increase in the deficit from 2024 to 2034,” CBO ...