Current Federal Debt and Deficit
Every month, the U.S. Treasury releases data on the federal budget, including the current deficit or surplus. The following reflects budget data for September, the final month of fiscal year (FY) 2026. It indicates that the nation amassed an approximately $2 trillion deficit and its first annual $1 trillion net interest bill.
Current Federal Deficit
–$27B
Federal Budget Deficit for September FY26
+$198B
Federal Budget Surplus for September FY25
The federal government reported a $27 billion deficit in September FY26, up $225 billion from the $198 billion surplus recorded in September FY25. However, accounting for certain payments shifting into other months due to holidays and weekends, the September FY26 deficit would have been $137 billion larger than the previous year.
Spending in September FY26 was $585 billion, $239 billion more than in September last year. Excluding the timing shift effects, spending was $151 billion more than in the same period last year. The largest driver of the increase was a $119 billion decrease in outlays related to the student loan program recorded in September FY25. Receipts were up by $14 billion in September FY26 compared to the previous year, driven by a $24 billion increase in collection of corporate income taxes. Offsetting that was a $24 billion decline in customs duties collected.
Cumulative Federal Deficit
$2.0T
Cumulative FY26 Deficit
$1.8T
Cumulative FY25 Deficit
At the end of FY26, the deficit was $217 billion above last year’s. Total outlays were $7.4 trillion, $386 billion higher than the same period in the previous year. That spending increase was driven mainly by one category: net interest rose by $115 billion, exceeding $1 trillion for the first time in U.S. history. Other categories that saw significant increases were Social Security spending up by $86 billion, stemming from cost-of-living adjustments and some retroactive payments; and Medicare outlays increased by $76 billion.
Receipts are up by $169 billion in FY26 compared to the previous year: individual income tax receipts have increased by $189 billion, and collection of payroll taxes is up $64 billion. Partially offsetting those and other revenue gains is a $71 billion decrease in corporate income tax collections.
National Debt
$32.2T
Debt Held by the Public at the end of FY26
$30.2T
Debt Held by the Public at the end of FY25
The FY26 deficit exceeded the Congressional Budget Office’s estimate for the entire year. The debt held by the public is approaching its post-World War II high as a percentage of gross domestic product and is rising rapidly, driven by aging demographics, rising healthcare costs, inadequate revenues, and skyrocketing interest costs. The good news is that many solutions are available to improve our fiscal outlook and put our nation on a stronger path.