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The U.S. budget deficit reached $1.99 trillion in fiscal year 2026, a 12% year-over-year increase; interest expenses surpassed $1 trillion for the first time, hitting a new historical high.
The U.S. Treasury Department announced on Friday that the federal budget deficit for fiscal year 2026, ending in September, expanded to $1.99 trillion, an increase of approximately 12% from $1.78 trillion in the previous fiscal year. Net interest outlays within this figure rose by $81.4 billion to $1.05 trillion, surpassing the trillion-dollar threshold for the first time and setting a new historical record, becoming a significant driver of the deficit expansion in the current fiscal year.
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