Uncle Sam Sets 4% Debt Interest: Borrowers, Take Note
Published Date: 1/2/2026
Notice
Summary
Starting January 1, 2026, the government will use a 4% interest rate to charge on unpaid federal debts and to decide if cash discounts or rebates on purchase cards make sense. This affects anyone who owes money to the government or works with federal payments. The rate is set for the whole year and helps keep government money matters fair and clear.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
4% Interest Charged on Federal Debts
Starting January 1, 2026, the Treasury sets the interest rate at 4.00 percent to charge on unpaid debts owed to the federal government. This rate applies for the whole year (January 1, 2026 through December 31, 2026) when the government assesses interest on outstanding federal debts.
4% Rate Guides Discounts and Rebates
For calendar year 2026 (January 1, 2026 through December 31, 2026), the Treasury will use a 4.00 percent rate as the comparison point when agencies evaluate whether a cash discount is cost-effective and when to pay purchase card invoices if a card issuer offers a rebate. This guides agency payment and purchasing decisions and affects organizations that sell to or do business with the federal government.
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Key Dates
Department and Agencies
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