Add as a preferred source on GoogleU.S. Deficit Climbed to $1.99 Trillion as Spending Outpaced Revenue
Outlays rose 6% to $7.4 trillion, while receipts increased 3% to $5.4 trillion. Interest costs climbed by more than $100 billion, and the deficit exceeded 6% of GDP.
The U.S. federal deficit widened to $1.99 trillion in fiscal 2026 as outlays rose faster than receipts, with higher interest costs and more than $100 billion in tariff refunds adding pressure.
The shortfall increased from $1.78 trillion in fiscal 2025. Total spending grew 6% to $7.4 trillion, while receipts rose 3% to $5.4 trillion, extending earlier coverage of the fiscal 2026 deficit.
Higher defense and Social Security expenses, along with an increase of more than $100 billion in interest costs, contributed to the spending rise. Falling corporate tax revenue also limited receipts.
The government faced more than $100 billion in tariff refunds after the Supreme Court invalidated tariffs imposed by Trump on national-security grounds. Federal debt surpassed $40 trillion in August.
The deficit’s share of gross domestic product rose above 6% in fiscal 2026. Treasury Secretary Bessent had aimed to bring that share down to 3%.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.