U.S. Ran a $2 Trillion Deficit Last Year

Posted bymarkskidmorePosted inUncategorized

Via the Committee for a Responsible Federal Budget:

Fiscal Year (FY) 2026 ended yesterday. Although official figures have not yet been released, our preliminary estimates show high and rising deficits and debt. For FY 2026, we estimate:

  • A budget deficit of $2.0 trillion, or 6.2% of Gross Domestic Product (GDP).
  • Debt held by the public of $32.3 trillion, or 100% of GDP.
  • Spending of $7.4 trillion, or 22.9% of GDP.
  • Revenue of $5.4 trillion, or 16.7% of GDP.
  • Interest costs of $1.1 trillion, a record 3.4% of GDP.
  • Interest was the second largest line item in the budget, costing more than defense or Medicare.

U.S. Ran a $2 Trillion Deficit Last Year, We Estimate-2026-10-01

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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