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[BUSINESS] · United States · 9 sources

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United States federal deficit reaches $1.99 trillion in fiscal 2026

The United States federal deficit for fiscal year 2026 reached approximately $1.99 trillion, marking a 12% increase from the $1.775 trillion recorded in 2025. This represents the largest annual deficit since 2021.

Total federal expenditures rose to $7.40 trillion, while total revenues reached $5.40 trillion. A significant driver of this fiscal imbalance is the rising cost of servicing the national debt, which has surpassed $40 trillion. Net interest payments on public debt hit a record $1.052 trillion, an increase of over 8% compared to the $970 billion paid in fiscal 2025.

These interest payments now account for roughly 3.2% of the U.S. GDP, a level that exceeds the previous record set in 1991. The rising costs are attributed to both the growing total debt and higher interest rates, with the average interest rate on negotiable Treasury securities reaching 3.52% at the end of September. Major expenditure items included Social Security benefits, totaling nearly $1.7 trillion, and Medicare expenditures, which reached nearly $1.1 trillion.

Entities

Bloomberg · Brookings Institution · Congressional Budget Office · Peter G. Peterson Foundation · Peterson Foundation · Scott Bessent · U.S. Department of the Treasury · United States · United States Department of the Treasury

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