US Budget Deficit Reaches $1.992 Trillion in Fiscal 2026, the Largest Since 2021

The US Treasury said on Friday, 16 October 2026, that the federal budget deficit for the fiscal year ended 30 September 2026 reached $1.992 trillion, about 12 percent or $217 billion above the previous year's $1.775 trillion. According to CNBC as relayed by Mehr, it is the largest annual deficit since 2021 and the 25th straight year in deficit.

Federal revenue was about $5.4 trillion, up 3 percent on the year, against spending of about $7.4 trillion. Rising interest costs on national debt that has passed $40 trillion, refunds of roughly $145 billion in tariff revenue after a Supreme Court ruling, and a 6 percent rise in defence spending contributed. The September deficit was $27 billion, against a surplus of $198 billion in September last year.