U.S. Budget Deficit Swells to Almost $2 Trillion for Fiscal 2026, Up 12% in a Single Year

The US federal deficit reached $1.992 trillion in fiscal 2026, up 12% from $1.775 trillion in fiscal 2025, Treasury figures show. The fiscal year ended September 30, with $5.403 trillion in revenues and $7.396 trillion in spending. The gap amounted to about 6% of GDP. Interest costs reached $1.1 trillion, a record and the budget’s second-largest line item. Tariff refunds and lower corporate tax receipts weighed on revenues, while spending rose across health, retirement, veterans, and defense programs in 2026.