US Fiscal 2026 Deficit Hits $1.99 Trillion, Highest in Five Years

Treasury Department data shows that for fiscal year 2026, ending September 30, the U.S. fiscal deficit widened by $217 billion year-over-year to $1.99 trillion, the highest level since fiscal year 2021. Revenue hit a record $5.4 trillion, while spending reached $7.4 trillion. Debt service costs rose 12% to $1.36 trillion. A Supreme Court ruling led to $145 billion in tariff refunds, dragging net tariff revenue down 11%. The fiscal deficit accounted for 6.2% of GDP.