CBO: FY2026 Federal Deficit Hits $2 Trillion, Highest Since Pandemic
The Congressional Budget Office reported on October 8 that the federal deficit for fiscal year 2026 (ended September 30) reached $2 trillion — the third-highest in U.S. history, behind only the two pandemic years. Federal revenues were $5.4 trillion (up 3%) while spending hit $7.4 trillion (up 6%); net interest payments on the national debt hit a record $1.1 trillion, consuming more than 20% of tax revenues; and publicly held debt now roughly equals a full year of GDP.
CBO's Monthly Budget Review shows FY2026 revenues rose by $169 billion while outlays rose by $386 billion, leaving the deficit $218 billion larger than the prior fiscal year. Net interest spending grew 11% year over year, with the fiscal watchdog Concord Coalition citing CBO data that interest costs are "consuming over 20% of federal tax dollars." Debt held by the public reached $32.4 trillion, about 100% of GDP.
It is the first time since the pandemic that the federal fiscal gap has returned to the $2 trillion scale, and the rapid rise of the interest burden is becoming the central issue in Washington's budget debate. (Compiled from the CBO report and financial media reporting; rewritten by GSM)
Published by GSM · USA (original Chinese edition)
Photo: Diliff，CC BY 2.5，Wikimedia Commons
