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United States budget deficit rises to nearly $2 trillion in fiscal year 2026
The United States federal budget deficit reached $1.99 trillion in fiscal year 2026, a 12% increase from the $1.78 trillion recorded in fiscal year 2025. This marks the third-largest annual deficit in U.S. history, surpassed only by the pandemic-era deficits of 2020 and 2021.
Total federal spending rose by 6% to a record $7.4 trillion, while federal revenues increased by 3% to $5.4 trillion. Major expenditure drivers included Social Security, which cost nearly $1.7 trillion, and Medicare, which cost approximately $1.1 trillion. Defense spending also saw an increase, rising by $48 billion to reach $917 billion.
A significant factor in the widening gap was the rising cost of servicing the national debt. Interest payments reached a record $1.36 trillion, with net interest outlays exceeding $1 trillion for the first time. This surge follows the total national debt surpassing the $40 trillion milestone earlier this year.
Additionally, the deficit was impacted by approximately $145 billion in tariff refunds. These refunds were triggered by a Supreme Court ruling that invalidated various global duties imposed by the Trump administration. Consequently, net tariff income declined by 11% to approximately $173 billion.
Entities
Congressional Budget Office · Donald Trump · Scott Bessent · Supreme Court of the United States · U.S. Department of the Treasury · United States · United States Department of the Treasury · United States Supreme Court
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Defense spending increased by 5% to $917 billion. www.devdiscourse.com
- [● 23 SOURCES] Tariff refunds totaling $145 billion contributed to the budget gap following a Supreme Court ruling. www.tag24.com · www.devdiscourse.com · www.vol.at · www.reporter.gr · www.haberaktuel.com · +15 more
- [● 21 SOURCES] The total U.S. national debt has surpassed $40 trillion. www.reporter.gr · www.insider.gr · saobentoemfoco.com.br · www.tag24.com · www.devdiscourse.com · +14 more
- [● 25 SOURCES] Federal revenue reached a record $5.4 trillion, a 3% increase from the previous year. www.reporter.gr · saobentoemfoco.com.br · www.tag24.com · thyblackman.com · www.tokenpost.com · +17 more
- [● 5 SOURCES] The fiscal year 2026 deficit represents the first full budget year of Donald Trump's second term. saobentoemfoco.com.br · www.tag24.com · www.devdiscourse.com · www.vol.at · www.reporter.gr
- [● 22 SOURCES] Interest payments on the national debt reached a record $1.36 trillion. www.reporter.gr · saobentoemfoco.com.br · www.tag24.com · www.devdiscourse.com · www.dunya.com · +14 more
- [DISPUTED] The U.S. federal budget deficit reached $1.99 trillion in fiscal year 2026. www.reporter.gr · www.insider.gr · saobentoemfoco.com.br · www.tag24.com · thyblackman.com · +17 more
- [● 25 SOURCES] Total federal spending rose 6% to $7.4 trillion in fiscal year 2026. www.reporter.gr · saobentoemfoco.com.br · www.tag24.com · thyblackman.com · www.tokenpost.com · +17 more
- [○ 1 SOURCE] Defense spending rose by $48 billion. www.devdiscourse.com
- [● 11 SOURCES] Net tariff income declined by 11% to approximately $173 billion. www.devdiscourse.com · www.dunya.com · www.vol.at · www.reporter.gr · www.haberaktuel.com · +6 more