Interest Payments on the Federal Debt: A Primer (CRS Report for Congress)
| Release Date |
Revised April 15, 2010 |
| Report Number |
RS22354 |
| Report Type |
Report |
| Authors |
Thomas L. Hungerford, Section Research Manager |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Of the three broad categories of federal spending, the only category that cannot be reduced bylegislative action is net interest payments. Net interest payments accounted for about 7% offederal spending between 1962 and the late 1970s. With the high interest rates in the late 1970sand the large budget deficits in the 1980s, net interest payments eventually rose to 15% of federalspending. The low interest rates combined with budget discipline in the 1990s reduced netinterest payments back down to 7% of federal outlays by 2003. Low interest rates kept netinterest payments low to 2009. However, net interest payments are projected to increasedramatically over the next 10 years. This report will be updated annually.
