America’s national debt hit a record $40.3 trillion earlier this year, costing taxpayers $1.05 trillion in interest charged by creditors, making it the third largest expenditure in the entire federal budget for fiscal year 2026, which ended September 31.

The Department of Treasury collected $5.403 trillion in revenue from all sources during the FY 2026, which was an increase of $169 billion over the previous year. But, as has happened year after year since 2001 as presidents and Congresses headed by both major political parties spent more than the government received, President Donald Trump and the Republican majorities in the Senate and House of Representatives approved spending increases of $386 billion, for a total expenditure of $7.396 trillion.

“Of particular concern is the growth of interest costs, driven by higher interest rates and a larger national debt,” Baseline Policy Founder Matthew Dickerson reported Monday. “Net interest spending totaled $1.052 trillion in FY 2026, $81 billion more than last year. That makes net interest the third-largest expenditure in the federal budget, trailing only Social Security and Medicare, and one of the fastest-growing major expenditures. Interest is now consuming more than one-third of all individual income tax revenues. For every dollar the federal government collected in individual income taxes, it spent the equivalent of 37 cents on net interest in FY 2026.”

Dickerson is not encouraged by the government’s budgetary performance for 2026 because “federal spending continues to outpace revenue, driven by ballooning interest costs and expanding entitlement programs. Without meaningful spending restraint, this cycle of rising debt and interest will remain unsustainable.” In addition to his work with Baseline Policy, Dickerson is senior fellow in Budgetary Analysis for the Fiscal Lab on Capitol Hill.

Asked by The Washington Stand what is meant by “unsustainable,” Dickerson explained, “Think about it from the perspective of investors that buy Treasury debt to finance the deficit spending. They want to know that the government can raise sufficient tax revenue to pay them a real return on their loans. But tax revenues cannot keep growing faster than the underlying economy without undercutting the necessary economic growth. In other words, if taxes rise as a share of the economy to try and keep up with rising spending, it squeezes the golden goose that produces the output that the government needs to tax.”

Dickerson’s assessment is shared by analysts at the Government Accountability Office (GAO) and the Congressional Research Service (CRS), as TWS reported October 12.

The worrisome news about federal spending, deficits, and debt comes with the 2026 midterm elections only 15 days away. A new Washington Post/ABC/Ipsos survey found 52% of the 2,545 U.S. adults interviewed saying they favor Democrats to control the House of Representatives, versus 44% who favor Republicans. The survey also asked respondents if they favored Democratic control of Congress as a check on Trump and 59% said yes, compared to 35% who said Republicans should control Congress to support the president’s policy agenda.

In an indication voter turnout in two weeks may be significantly higher than is the norm for midterms, 79% of the respondents said they absolutely or very likely will vote on November 3 and only 2% said they have already voted via early-voting procedures.

Republican critics may question the Post results because in weighting the results, the survey increased the Democratic strength from 46.9 to 47.3, but for the GOP strength, the survey decreased from 45.8 to 42.9. The survey was conducted October 9-13.

By contrast, the latest Issues & Insights/TIPP Poll found an electorate significantly more evenly divided, with 46% of the respondents preferring Democratic control of Congress and 42% choosing GOP control. But this survey was conducted between September 29 and October 1 and turned up 12% of respondents being undecided.

The most recent Cook Political Report survey of 37 tightly contested House races found an even closer split among voters, with 49% supporting Democratic candidates and 47% backing GOP candidates. The same survey produced a 41%-to-41% standoff between the two major political parties regarding their net favorability.

Which party controls Congress is a key factor in determining if or when there will be significant changes in federal tax and spending policies, including responding to the national debt. Democrats oppose spending cuts, especially for entitlement programs and higher taxes. Republicans generally favor lower taxes and other measures to stimulate higher revenues through economic growth.