U.S. budget deficit swells to almost $2 trillion for fiscal 2026, up 12% in a single year
The Treasury Department published the U.S. budget deficit for the 2026 fiscal year.
TL;DR
- The U.S. budget deficit for fiscal year 2026 was nearly $2 trillion.
- This deficit is a 12% increase from the prior fiscal year's $1.775 trillion deficit.
- It is the third-highest annual deficit in U.S. history, following 2020 and 2021.
- The government has recorded a deficit for 25 straight fiscal years, with the last surplus in 2001.
- Social Security was the largest government expenditure at nearly $1.7 trillion.
- Medicare costs were almost $1.1 trillion.
- Net interest payments exceeded $1 trillion.
- Individual income taxes brought in over $2.8 trillion, an increase of about 7%.
- Corporate income tax receipts were $381 billion, a decrease due to tax cuts from the 'One Big Beautiful Bill' act.
- Interest paid on the national public debt exceeded $1.3 trillion.
- The national debt has more than doubled over the last decade and exceeded $40 trillion earlier this year.
- Treasury Secretary Scott Bessent believes the U.S. can grow its way out of the debt.
- President Donald Trump's proposed tariffs aim to increase revenue and reduce debt.
- Gross customs duties reached a record high, but total customs revenue was impacted by refunds due to a Supreme Court ruling.
- September's monthly deficit was $27 billion, a reversal from a $198 billion surplus in September of the prior year.