DID Press: US Department of the Treasury has reported a 12% increase in the federal budget deficit in the 2026 fiscal year, bringing the shortfall to nearly $2 trillion.
According to the Treasury Department’s figures reported by Reuters, the deficit reached approximately $1.99 trillion in the fiscal year ended September 30, up from $1.78 trillion in the previous fiscal year. This marks the largest annual deficit since 2021 and the third-largest on record.
The increase comes as the US government faces mounting debt-servicing costs and continued growth in federal spending. Total government spending reached a record $7.4 trillion, while revenue rose to approximately $5.4 trillion. Interest payments on the national debt climbed to a record $1.36 trillion, an increase of 12% from the previous year.
Reuters also reported that US national debt surpassed $40 trillion in August, adding to concerns about rising borrowing costs and the long-term sustainability of federal finances.
The Trump administration maintains that economic growth could help improve the country’s fiscal position. However, critics argue that without concrete measures to narrow the budget deficit, achieving long-term fiscal stability will remain difficult.
With the US midterm elections approaching, the growing deficit is expected to remain a contentious issue in economic policy debates and political competition.