US Budget Deficit Widens to $1.99 Trillion, Highest Since 2021
What Happened
The US federal budget deficit rose $217 billion to $1.99 trillion in fiscal 2026, up about 12% from $1.78 trillion in 2025, Treasury data shows. Government spending reached a record $7.40 trillion, while receipts rose to a record $5.40 trillion. Debt-service outlays climbed 12% to a record $1.36 trillion.
Key Takeaways
The deficit was the largest since 2021 and third-largest on record. Spending grew faster than revenue, while $145 billion in tariff refunds contributed to net tariff receipts falling 11% to about $173 billion.