Politics
US federal budget deficit hits nearly $2 trillion in fiscal year 2026
October 17, 2026 at 02:26 AM
Coverage
2 reports · 1 in Arabic, 1 in English · over 3 hours
The Treasury Department reported Friday the federal deficit reached $1.99 trillion in fiscal year 2026, its largest annual shortfall since 2021.
- The deficit rose 12% from $1.78 trillion the prior year, with revenue hitting a record $5.4 trillion and spending $7.4 trillion.
- Net interest payments on the public debt topped $1 trillion for the first time, driven by record debt levels and higher rates.
- Treasury issued about $145 billion in tariff refunds after the Supreme Court ruled certain tariffs violated federal law.
- Committee for a Responsible Federal Budget president Maya MacGuineas said "tough choices" are needed and the country is running out of time.