U.S. budget deficit rises to $1.992 trillion for fiscal 2026
The U.S. recorded a $1.992 trillion deficit, up 12% from the previous year, marking the third‑highest deficit in history.
Key facts
- The 2026 fiscal year deficit was $1.992 trillion, 12% higher than $1.775 trillion in 2025.
- Social Security spending was nearly $1.7 trillion, the largest portion of government outlays.
- Net interest payments exceeded $1 trillion, up from $970 billion in 2025.
- Corporate income tax receipts fell by about $70 billion to $381 billion due to the One Big Beautiful Bill.
- The Treasury reported a 25th consecutive fiscal year of deficit.
According to CNBC, the Treasury Department released the deficit figure for fiscal 2026. The U.S. finished the year with a deficit of $1.992 trillion, 12% higher than the $1.775 trillion deficit in 2025. This is the third‑highest annual deficit in U.S. history. The Treasury said this is the 25th straight fiscal year operating at a deficit.
Social Security was the largest expense, nearly $1.7 trillion, up modestly from $1.6 trillion in 2025. Medicare cost almost $1.1 trillion, slightly higher than the $1 trillion in 2025. Net interest payments topped $1 trillion, compared with $970 billion in 2025.
Individual income taxes brought in more than $2.8 trillion, a 7% increase year over year. Corporate income tax receipts were $381 billion, down about $70 billion from 2025 due to the One Big Beautiful Bill. The Treasury also reported record gross customs duties, but refunds after a Supreme Court ruling reduced total revenue.
Treasury Secretary Scott Bessent said the U.S. can "grow our way out of" its debt, emphasizing global growth as a solution. The Treasury noted that the 2026 deficit follows a trend of increasing deficits over the past 25 years. The last surplus was in 2001.
Context
The deficit grows as government spending on programs like Social Security and Medicare rises, while tax receipts are affected by policy changes. The Treasury Department tracks these numbers to monitor national debt. The 2026 deficit follows a trend of increasing deficits over the past 25 years.
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