U.S. budget deficit for 2026 fiscal year near $2 trillion
The U.S. federal budget deficit reached nearly $2 trillion for the 2026 fiscal year, marking the third-highest deficit in the nation's history. Increased spending on Social Security, Medicare, and interest payments contributed to the rising debt levels.
Why it matters
The growing national debt impacts long-term economic stability and has already influenced rising Treasury yields, signaling potential financial stress.
The U.S. finished the 2026 fiscal year with a budget deficit of nearly $2 trillion, the latest measurement to underscore the extent of the country's financial stress.
The $1.992 trillion figure was about 12% higher than the $1.775 trillion deficit in the prior fiscal year, the Treasury Department reported Friday.
It's the third-highest annual deficit in U.S. history, behind only 2020 and 2021, when the federal government was doling out trillions of dollars in financial stimulus amid the Covid-19 pandemic. The 2026 fiscal year saw record sums for both receipts and outlays, according to a Treasury Department official.
With Friday's release, the U.S. officially recorded its 25th straight fiscal year operating at a deficit. The government last recorded a surplus — meaning its revenues were larger than debts — in 2001.
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