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 March, the sixth month of fiscal year (FY) 2026.
Current Federal Deficit
$164B
Federal Budget Deficit for March FY26
$161B
Federal Budget Deficit for March FY25
The federal government reported a deficit of $164 billion in March FY26, an increase of $4 billion from the $161 billion deficit recorded in March FY25. However, March 1 fell on a weekend in both FY25 and FY26, resulting in certain payments shifting into February in each year. Adjusting for those timing shifts, the March FY26 deficit would have been $6 billion more than the same month in the previous year.
Spending in March FY26 was $21 billion higher than in March last year, though, adjusting for the timing shifts, outlays were up $24 billion compared to the same month in FY25. Categories that saw the largest increases were the Department of Agriculture ($15 billion more than March FY25) and Medicaid ($10 billion). Partially offsetting those and other spending increases was a $5 billion decrease in spending related to Social Security, as a retroactive payment of $15 billion was administered last February that did not occur in FY26. Receipts were up by $17 billion in March FY26 compared to the previous year: customs duties collections rose by $14 billion, mainly due to the increase in tariffs, and payroll tax receipts increased by $6 billion. Offsetting those revenue gains was a $11 billion decline in corporate tax collections.
Cumulative Federal Deficit
$1.2T
Cumulative FY26 Deficit
$1.3T
Cumulative FY25 Deficit (through March FY25)
Six months through FY26, the deficit was $139 billion below last year’s level. Total outlays were $3.7 trillion, $84 billion higher than the same period in the previous year. That increase was driven mainly by three categories: Social Security spending was up by $42 billion, stemming from cost-of-living adjustments and some retroactive payments; Medicare outlays increased by $34 billion; and net interest rose by $30 billion. Partially offsetting those and other increases was a $20 billion decrease in spending related to the Environmental Protection Agency.
Receipts are up by $222 billion in FY26 compared to the previous year: individual income tax receipts have increased by $102 billion, and customs duties collections rose by $123 billion, largely due to the increase in tariffs, though the auspice under which they were collected has recently been ruled unconstitutional.
National Debt
$31.3T
Debt Held by the Public at the end of March FY26
$28.8T
Debt Held by the Public at the end of March FY25
The FY26 deficit through the first six months is the third largest in the last six years. 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 there are many solutions available to improve our fiscal outlook and put our nation on a stronger path.