US Budget Deficit Reaches Nearly $2 Trillion in FY2026
Summary
The US budget deficit for fiscal year 2026 widened to nearly $2 trillion, the largest in five years, as higher interest payments, social welfare spending and defense outlays pushed total spending to a record $7.40 trillion. Customs duty refunds also cut revenue after a Supreme Court ruling rolled back part of Trump-era tariffs.
Key Points
- The US budget deficit for fiscal year 2026 rose to $1.99 trillion, up $217 billion from the previous year.
- Interest payments on the $40 trillion national debt reached a record $1.36 trillion and became the second-largest federal spending category.
- Revenue hit a record $5.40 trillion, but total spending climbed faster to $7.40 trillion, widening the deficit.
- Customs duty refunds tied to a Supreme Court ruling reduced net customs revenue and added to the deficit.
- The Treasury Department said the estimated deficit-to-GDP ratio for FY2026 was 6.2 percent.
