The United States is facing a growing debt crisis, with net interest payments reaching a staggering 18.7% of federal revenues in January, the highest level since the 1990s. This figure is just 20 basis points below the all-time record of 18.9% set in 1992.

Moreover, this share has DOUBLED in just 18 months as interest costs have soared. Over the past 12 months, interest expenses hit a record $1.2 trillion, making it the second-largest federal expenditure after Social Security.

Projections indicate that the burden will continue to rise. Net interest costs as a percentage of federal revenues could reach 34% by 2054, assuming no recession occurs during this period. By 2026, annual interest payments are expected to exceed $1 trillion, and by 2035, they could reach $1.8 trillion. As a share of revenues, interest payments may climb to 22.2% by 2035, further limiting the government’s ability to fund other critical programs.

The Congressional Budget Office (CBO) warns that federal deficits will expand significantly, reaching 8.5% of GDP by 2054, exacerbating the debt crisis. Net interest costs are projected to grow at an average annual rate of 6.5% between 2025 and 2035, potentially crowding out essential spending.

Experts caution that without substantial fiscal reforms, the U.S. could face serious economic consequences. Investor Ray Dalio has even warned that the country might experience a financial “heart attack” if the debt problem remains unaddressed.

Given these alarming trends, fiscal responsibility advocates emphasize the urgent need for reforms to stabilize national finances and mitigate risks to the economy.