U.S. budget deficit widens to nearly $2 trillion in fiscal 2026
publishers 15articles 16first reported 16 Oct, 20:41 UTCdeveloping since 16 Oct · 9 editions
The U.S. federal budget deficit widened to $1.99 trillion in fiscal 2026, the largest shortfall since 2021, according to Treasury Department figures reported by NPR and Fortune. The gap increased 12% from $1.78 trillion in fiscal 2025.
Federal revenue rose 3% to $5.4 trillion, while spending climbed 6% to $7.4 trillion, Fortune reported. Social Security and Medicare were the two largest spending categories, followed by interest on the national debt, which exceeded spending on defense and Medicaid.
Gross interest costs reached $1.36 trillion, with an average interest rate of 3.53%. Net interest payments increased 8% to $1.05 trillion, equivalent to about $2.9 billion per day. Fortune said that growth outpaced increases in federal spending, revenue and gross domestic product. The Peter G. Peterson Foundation estimated net interest costs at 3.2% of GDP.
Gross federal debt stood at $40 trillion, while debt held by the public was equal to 100% of GDP. About one-third of publicly held debt—more than $10 trillion—is due to mature within 12 months and will need to be refinanced. The Congressional Budget Office projected in February that annual interest expenses would reach $2.1 trillion by 2036.
HOW THIS STORY WAS MADE
Written from 2 articles, 2 with the publisher's own text; 2 independent newsrooms once syndicated copies count as one; this version written 20 h after the record first saw the story; the editor kept it as written.
- Publishers
- 15
- Source articles
- 16
- Given to the writer
- 2, 2 with the article's own text
- Independent newsrooms
- 2
- This version written
- 20 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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