Where can us government find money to pay this level of interest payment

This is the core fiscal challenge the US faces right now. Here's a clear breakdown of where the money comes from — and why it's increasingly strained:

The scale of the problem today

The US Treasury is currently paying about $3 billion a day in interest — $628 billion in net interest just in the first seven months of FY2026 (October–April). That already exceeds both Medicare and Medicaid spending for the same period. Fortune

Where the money actually comes from

The government has essentially four levers:

1. Tax revenue — In FY2026, the $1 trillion interest bill consumes 19 cents of every tax dollar collected. By 2036, that rises to 26 cents on every dollar. It would effectively swallow all corporate income tax revenue, or 57% of all payroll taxes. American Action Forum
2. More borrowing — The government pays interest by selling new Treasury bonds, bills, and notes. It essentially borrows to pay the interest on existing debt — a self-reinforcing cycle. U.S. Treasury Fiscal Data
3. Tariff revenue — Tariffs are projected to bring in $300–$400 billion a year, which covers only a fraction of the annual interest bill exceeding $1 trillion. Fortune
4. Crowding out other spending — Interest is now the second-largest spending category in the federal budget, behind only Social Security — meaning less is available for defense, healthcare, education, and everything else. Peterson Foundation

The trajectory is alarming

CBO projects interest payments will grow from $1 trillion in 2026 to $2.1 trillion by 2036 and a staggering $6.6 trillion by 2056 — growing faster than every other category of federal spending, including Social Security and Medicare. American Action Forum

The uncomfortable truth

There's no clean answer. The US government currently spends more than it collects even before paying interest — meaning it has a structural deficit that borrowing alone can't fix. Short of a combination of sustained GDP growth, lower interest rates, major spending cuts, or significant tax increases, the debt spiral is very difficult to escape. That's why many economists call the current trajectory "unsustainable."