US Fiscal 2026 Deficit Nears $2 Trillion, Largest Since 2021
Summary
- The US federal government's budget deficit for fiscal 2026 was reported at about $2 trillion, the largest since 2021.
- Federal spending reached $7.4 trillion and revenue totaled $5.4 trillion, with the deficit at 6% of GDP and debt exceeding 100% of GDP projected.
- Rising US Treasury yields were cited as a factor that could further increase the federal government's borrowing costs and interest burden.
Forecast Trend Report by Period
The US federal government's fiscal 2026 budget deficit rose 12% from a year earlier to nearly $2 trillion, the largest shortfall since 2021.
The Congressional Budget Office said on October 8 that the federal deficit for fiscal 2026 totaled about $2 trillion.
Federal spending reached $7.4 trillion during the period, while revenue totaled $5.4 trillion. That left outlays exceeding revenue by about $2 trillion.
The budget deficit is projected to exceed 6% of gross domestic product. Federal debt held by the public is also projected to top 100% of GDP.
Higher US Treasury yields were cited as a factor that could further raise the federal government's borrowing costs. If yields remain elevated, the government's interest burden could also increase.
JH Kim
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