# US Fiscal Deficit Surpasses $1 Trillion

> US federal interest costs hit $1.05 trillion for first time in history.
- Title: US Fiscal Deficit Surpasses $1 Trillion · BigGo Finance
- Summary: US federal interest costs hit $1.05 trillion for first time in history. US federal interest costs reached $1.05 trillion in fiscal year 2026, the first time…
- Keywords: us fiscal deficit, interest costs, fiscal year 2026, treasury debt, gdp ratio, public debt, interest rates, fiscal policy, finance, markets, Fiscal, Deficit
- Source: BigGo Finance — https://finance.biggo.com/news/03a2fbb8-7687-49e1-a4e0-f739ffe3aa4a
- Author: BigGo Finance
- Published: 2026-10-19T07:55:26+00:00
- Read time: 1 min
- Topics: us fiscal deficit, interest costs, fiscal year 2026, treasury debt, gdp ratio, public debt, interest rates, fiscal policy, finance, markets
## US Fiscal Deficit Deepens
US federal government's net interest costs for fiscal year 2026 reached $1.05 trillion.
## Annual Interest Costs Surpass $1 Trillion
This marks the first time in history that annual interest costs exceeded $1 trillion.
## 8% Increase from Prior Year
Net interest costs rose more than 8% from $970 billion in the previous fiscal year.
## GDP Ratio Hits 3.2%
The cost reached 3.2% of gross domestic product, breaking the 1991 record.
## Public Debt Exceeds $32 Trillion
Public debt, excluding government internal holdings, has surpassed $32 trillion.
## Interest Rates Double in Five Years
The average rate on marketable Treasuries more than doubled from 1.47% to 3.52% in five years.
## Interest Spending Ranks Third
Interest spending now accounts for the third-largest share of federal expenditures.
## Vicious Cycle Warning
Experts warn of a vicious cycle where rising debt and rates feed on each other.
## Bret Loper's Warning
Bret Loper said the problem is getting worse and action is needed now.
## Federal Reserve Rate Hikes Expected
Markets expect the Federal Reserve to raise its benchmark rate at least once more this year.
## Key takeaway

US federal interest costs reached $1.05 trillion in fiscal year 2026, the first time ever exceeding $1 trillion.