U.S. debt interest outlays overtake defense spending as fiscal pressure builds

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U.S. debt interest tops defense

Highlights

U.S. interest payments on federal debt have surpassed defense spending, crossing $1 trillion annually and now representing a larger budget share than military expenditures.
The Department of Defense's full operating costs for a Boeing F/A-18E/F Super Hornet run $22,000 to $30,000 per flight hour, with a $1.2 billion Navy contract awarded to Boeing for 17 Block III Super Hornets and support packages.
With the 2025 federal budget allocating 22% to Social Security, 15% to Medicare, and 13% to defense, widening deficits—last year's $1.78 trillion gap already exceeded this year—spotlight rising fiscal strain and favor defense stocks and gold as inflation hedges.

Budget burden shifts beyond military costs

As reported by Weiss Ratings, the article argues that even large U.S. military expenditures are now smaller than the government's annual interest payments on outstanding debt.

It cites Boeing's F/A-18 program as one illustration of defense costs, noting the U.S. Navy pays about $55.7 million for a single F/A-18, with some aircraft costing as much as $67.4 million. Boeing is also fulfilling a roughly $1.2 billion Navy contract for 17 Block III Super Hornets and technical data packages.

The article says each aircraft burns about 1,100 gallons of jet fuel per hour during normal operations. Based on the figures cited, that translates to about $4,400 an hour at wholesale spot prices or $8,800 using the national average airport price, before adding maintenance and other operating expenses.

Using figures attributed to Military Machines, the piece says the Department of Defense reimbursable rate for an F/A-18E/F Super Hornet is about $10,500 per flight hour for fuel and direct costs, while full operating costs climb to roughly $22,000 to $30,000 per hour once maintenance labor, spare parts and depot repairs are included.

Debt costs reshape investor and policy outlook

The article places those costs against broader federal spending, stating that in 2025 Social Security accounts for 22% of the federal budget, Medicare for 15% and defense for 13%. Interest payments on existing federal debt now take a larger share than defense, making them the biggest pressure point highlighted in the analysis.

It says outstanding U.S. debt stood at $5.8 trillion 25 years ago and that annual deficits have continued to widen the total. The piece adds that last year's budget gap reached $1.78 trillion and that the current fiscal year has already exceeded that level with two months left, while annual interest payments have topped $1 trillion for the first time and are set to do so again this year.

For investors, the commentary presents defense contractors and hard assets as potential hedges against deteriorating purchasing power. It points to General Dynamics as an example of a defense stock that has benefited from sustained military spending, while also recommending gold as a long-standing protection against currency debasement.

Our earlier coverage of higher G7 bond yields highlighted how the jump in rates has pushed up sovereign borrowing costs and is adding to governments’ interest burdens. We noted that elevated yields were already translating into billions of dollars in extra financing costs and could intensify fiscal strain and market pressure if rates remain high.

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