US Budget Deficit Nears $2 Trillion for FY2026, Up 12% YoY

The U.S. fiscal year 2026 concluded with a budget deficit of nearly $2 trillion ($1.992T), marking a 12% increase from the prior year. This is the third-highest annual deficit in U.S. history, excluding pandemic stimulus years.

Key figures:

• Total Deficit: $1.992 trillion (vs. $1.775T in FY2025)
• Spending Drivers: Social Security ($1.7T), Medicare ($1.1T), and net interest payments (over $1T) were major contributors.
• Revenue: Individual income taxes rose 7% to over $2.8T, while corporate income tax receipts fell by $70B .

The persistent deficit adds to concerns over the nation's financial health, previously reflected in rising Treasury yields.