US federal deficit reaches $2 trillion

The Congressional Budget Office reported that the United States federal government ran a $2 trillion deficit during the past fiscal year. This represents a $218 billion increase compared to the previous 12 months.

Despite the deficit, tax collections rose by 3 percent in fiscal 2026, totaling $5.4 trillion. This growth was primarily driven by higher collections of individual income and payroll taxes. For comparison, federal spending in fiscal 2019 was $4.4 trillion against revenues of $3.5 trillion.

Annual interest payments on the national debt have now exceeded $1.1 trillion. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, noted that the nation's fiscal path has been running backward for an extended period, advocating for Congress to aim for deficits at approximately 3% of GDP.