[U.S. Net Interest Expense for Fiscal Year 2026 Hits Record $1.05 Trillion, Up Over 8% Year-on-Year] According to Bloomberg, data from the U.S. Treasury Department shows that as of the end of September, net interest expense for the federal government in fiscal year 2026 reached $1.05 trillion, an increase of over 8% compared to $970 billion in fiscal year 2025, setting a historic record. The Peter G. Peterson Foundation estimates that this expense amounts to 3.2% of GDP, surpassing the record set in 1991. Last quarter's GDP data is expected to be released later this month. The report highlights that the burden of interest payments is consuming a larger proportion of federal revenue, increasing the pressure of borrowing to pay interest, and potentially weakening the U.S.'s fiscal capacity to respond to economic shocks.