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What is Local Spending on Interest?

In FY 2025, local government outlays on interest were $74 billion.

Estimated spending on interest for FY 2026 is $80 billion.

Local Interest Analysis  

 

This page shows the current trends in US Local outlays on interest.

Recent US Local Spending on Interest

Recent Local Interest Spending

Chart S.71l: Recent Local Interest Spending

Local spending on interest was increasing in the late 2000s reaching $60 billion in 2010. In the first half of the 2010s local spending on interest kept below $65 billion, but increased to $70 billion in the late 2010s.

Local interest spending for FY2025 was estimated at $74 billion.

Recent Local Int Spend as Pct GDP

Chart S.72l: Recent Local Int Spend as Pct GDP

Viewed from a GDP perspective, local spending on interest in the late 2000s increased from 0.36 percent GDP to 0.41 percent GDP in 2009. In the 2010s local spending on interest has steadily declined, flattening out at 0.3 percent of GDP in the late 2010s.

In the early 2020s local interest spending declined to 0.26 percent GDP.

Local spending on interest for FY2025 was estimated at 0.25 percent GDP.

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US Local Spending on Interest Since 1900

Local Interest since 1900

Chart S.73l: Local Interest since 1900

Local government spending on interest at the start of the 20th century was 0.26 percent of GDP and increased steadily for the next 30 years, hitting 0.52 percent GDP in 1929. In the Great Depression local spending on interest began a sharp increase, hitting 1.09 percent GDP in 1933. For the rest of the 1930s and through World War II local spending on interest declined sharply, passing 0.51 percent GDP in 1940 and bottoming out at 0.11 percent GDP in 1951.

Starting in 1952 local spending on interest began a sustained increase, hitting 0.21 percent GDP in 1960, 0.3 percent GDP in 1974, 0.3 percent GDP in 1983 and peaking at 0.48 percent GDP in 1987.

In the 1990s and 2000s, local spending on interest declined, down to 0.4 percent GDP in 2000.

In the 2010s local spending on interest has steadily declined, down to 0.31 percent GDP in 2020.

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Spending Data Sources

Spending data is from official government sources.

Gross Domestic Product data comes from US Bureau of Economic Analysis and measuringworth.com.

Detailed table of spending data sources here.
Medicare breakdown here; Medicaid breakdown here.

Federal spending data begins in 1792.

State and local spending data begins in 1820.

State and local spending data for individual states begins in 1957.

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Debt Now:  $38,380,536,147,996.03
Debt 2/2020:$23,409,959,150,243.63

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Data Sources for 2021_2029:

Sources for 2021:

GDP, GO: GDP, GO Sources
Federal: Fed. Budget: Hist. Tables 3.2, 5.1, 7.1
State and Local: State and Local Gov. Finances
'Guesstimated' by projecting the latest change in reported spending forward to future years

Sources for 2029:

GDP, GO: GDP, GO Sources
Federal: Fed. Budget: Hist. Tables 3.2, 5.1, 7.1
State and Local: State and Local Gov. Finances
'Guesstimated' by projecting the latest change in reported spending forward to future years

> data sources for other years
> data update schedule.

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Medicaid Update for FY2024

On January 14, 2026, the Centers for Medicare and Medicaid Services (CMS) published its annual report on National Health Expenditures and its NHE Tables includes data on Medicaid from 1960 to 2023. On January 15, 2026, usgovernmentspending.com updated its Medicaid data.

Item2024
Estimate
2024
Actual
Federal Medicaid$567.2 bn$567.2 bn 
State Medicaid (net)$124.4 bn$253.2 bn 
Total Medicaid$691.6 bn$820.4 bn 

The federal Medicaid number comes from the Federal Budget Subfunction 558: Grants to states for Medicaid. The state contribution comes from the NHE Tables.

usgovernmentspending.com publishes "guesstimates" of state and local spending from the latest year published by the Census Bureau (currently FY 2023) to the last year in the Historical Tables of the federal budget. (currently 2029 from the FY25 budget). So we have developed "guesstimates" of Medicaid spending going out to 2029, assuming that the overall Medicaid spending increases at the same rate as the federal "Grants to States for Medicaid" increases.

National Health Expenditure data is updated each year in mid December. 

CBO Long Term Budget Outlook for 2025
On March 27, 2025 the Congressional Budget Office released its annual Long Term Budget Outlook for 2025, which projects federal spendin ...

State FY25 Taxes Update
On November 22, 2025 usgovernmentspending.com updated FY2025 state revenue with quarterly tax data released by the US Ce ...

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