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 December, calendar year 2025, the third month of fiscal year (FY) 2026.
Current Federal Deficit
$145B
Federal Budget Deficit for December FY26
$87B
Federal Budget Deficit for December FY25
The federal government reported a deficit of $145 billion in the month of December FY26, an increase of $58 billion from the $87 billion deficit recorded in December FY25. However, January 1 fell on a weekend in both FY25 and FY26, causing certain payments, mostly Medicare-related, to be shifted into December of both years. Those timing shifts inflated outlays for the past two Decembers. Conversely, December 1 FY25 also fell on a weekend, pushing payments back to November FY25. On net, the timing shifts increased the reported deficit for December FY26 and decreased it for December FY25. Adjusting for those timing shifts, the December FY26 deficit would have been $26 billion less than the same month in the previous year.
Spending in December FY26 was $89 billion higher than in December last year, though, adjusting for the timing shifts, outlays were up $5 billion compared to the same month in FY25. Categories that saw increases were Defense spending ($19 billion more than in December FY25), Medicaid ($10 billion), Social Security ($10 billion), and net interest costs ($10 billion). Partially offsetting those and other spending increases was a $24 billion decrease in outlays associated with international assistance. Receipts were up by $30 billion in December FY26 compared to the previous year: customs duties collections rose by $21 billion, mainly due to the increase in tariffs, and individual income tax receipts increased by $31 billion.
Cumulative Federal Deficit
$602B
Cumulative FY26 Deficit
$711B
Cumulative FY25 Deficit (through December FY25)
One quarter through FY26, the deficit was $109 billion below last year’s level. However, the cumulative deficits of FY25 and FY26 have been affected by the aforementioned January 1 timing shifts. Without those effects, the cumulative deficit for FY26 would have been $111 billion less than last year’s adjusted total.
For FY26, total outlays were $1.8 trillion, $33 billion lower than the same period in the previous year. Adjusting for those timing shifts, spending was $31 billion above the same period last year. That increase was driven mainly by three categories: net interest rose by $29 billion; Social Security spending was up by $28 billion, stemming from cost-of-living adjustments and some retroactive payments; and Medicare outlays increased by $22 billion. Partially offsetting those and other increases was a $19 billion decrease by the Environmental Protection Agency and a $13 billion decrease in spending related to education.
Receipts are up by $138 billion in FY26 compared to the previous year: individual income tax receipts have increased by $88 billion, and customs duties collections rose by $69 billion, largely due to the increase in tariffs.
National Debt
$30.7T
Debt Held by the Public at the end of December FY26
$28.7T
Debt Held by the Public at the end of December FY25
The FY26 deficit through the first three months is the second-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.