Federal deficit rose to $2 trillion for fiscal 2026, adding to debt fears
The federal budget deficit rose to $2 trillion in fiscal 2026, the Congressional Budget Office estimated Thursday, as spending rose faster than revenues.
TL;DR
- The federal budget deficit reached $2 trillion in fiscal year 2026, according to the Congressional Budget Office.
- Government spending increased by 6%, outpacing a 3% rise in tax revenue.
- Net interest payments on the national debt are now the second-largest federal spending category, comprising 15% of expenditures.
- The Social Security retirement trust fund is projected to be exhausted by 2032.
- Concerns about fiscal stability are heightened as the national debt approaches $40 trillion and Treasury yields rise.
- The One Big Beautiful Bill Act, a Republican-backed tax cut, is criticized for contributing to the deficit, with corporate income tax revenue decreasing by 16%.