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 June, the ninth month of fiscal year (FY) 2026.
Current Federal Deficit
$120B
Federal Budget Deficit for June FY26
$27B
Federal Budget Surplus for June FY25
The federal government reported a $120 billion deficit in June FY26, up $147 billion from the $27 billion surplus recorded in June FY25. However, June 1, 2025, fell on a weekend, which shifted certain payments into May of that year. Without that timing shift, the June FY26 deficit would have been $50 billion larger than the previous year.
Spending in June FY26 was $616 billion, $117 billion more than in June last year. Excluding the effect of the timing shift, spending was $20 billion more than in the same period last year. Categories that saw the largest increases were net interest costs ($20 billion more than June FY25) and Veterans Services ($16 billion). Receipts were down by $31 billion in June FY26 compared to the previous year, driven by an overall $52 billion decline in net customs duties collected. Last June, $27 billion was collected via tariffs that the Supreme Court has since ruled unconstitutional. As a result, the federal government has begun issuing refunds, and June 2026 saw a net outflow of $26 billion. A $47 billion increase in individual income tax collections partially offset the overall decline.
Cumulative Federal Deficit
$1.4T
Cumulative FY26 Deficit
$1.3T
Cumulative FY25 Deficit (through June FY25)
Nine months through FY26, the deficit was $29 billion above last year’s level. Total outlays were $5.5 trillion, $172 billion higher than the same period in the previous year. That increase was driven mainly by three categories: net interest rose by $78 billion; Social Security spending was up by $63 billion, stemming from cost-of-living adjustments and some retroactive payments; and Medicare outlays increased by $57 billion. Partially offsetting those and other increases was a $57 billion Department of Education outlays that were largely driven by a sizeable downward re-estimate of outstanding loans that did not occur last year.
Receipts are up by $143 billion in FY26 compared to the previous year: individual income tax receipts have increased by $136 billion, and customs duties collections rose by $55 billion, largely due to the increase in tariffs, though the auspice under which they were collected for much of the past year has recently been ruled unconstitutional. Partially offsetting those and other revenue gains is an $87 billion decrease in corporate income tax collections.
National Debt
$31.5T
Debt Held by the Public at the end of June FY26
$28.9T
Debt Held by the Public at the end of June FY25
The FY26 deficit through the first nine 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.