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 May, the eighth month of fiscal year (FY) 2026.
Current Federal Deficit
$293B
Federal Budget Deficit for May FY26
$316B
Federal Budget Deficit for May FY25
The federal government reported a $293 billion deficit in May FY26, down $23 billion from the $316 billion deficit recorded in May FY25. However, June 1, 2025, fell on a weekend, which shifted certain payments into May of that year. Without that timing shift, the May FY26 deficit would have been $74 billion larger than the previous year.
Spending in May FY26 was $628 billion, $59 billion less than in May last year. Excluding the effect of the timing shift, spending was $38 billion more than the same period last year. Categories that saw the largest increases were net interest costs ($21 billion more than May FY25), Social Security outlays ($8 billion), and spending by the Department of Agriculture ($5 billion). Receipts were down by $36 billion in May FY26 compared to the previous year: corporate income tax receipts declined by $32 billion, and customs duties collected decreased by $22 billion. A $10 billion increase in individual income tax collections partially offset the overall decline.
Cumulative Federal Deficit
$1.2T
Cumulative FY26 Deficit
$1.4T
Cumulative FY25 Deficit (through May FY25)
Eight months through FY26, the deficit was $118 billion below last year’s level. However, that, too, is affected by the June 1, 2025, timing shift. Controlling for that accounting maneuver, the cumulative deficit through May FY26 is $21 billion below last year's corresponding total.
Total outlays were $4.9 trillion, $56 billion higher than the same period in the previous year. Excluding the timing shift, spending was up $153 billion. That increase was driven mainly by three categories: net interest rose by $58 billion; Social Security spending was up by $57 billion, stemming from cost-of-living adjustments and some retroactive payments; and Medicare outlays increased by $44 billion. Partially offsetting those and other increases was a $20 billion decrease in spending related to the Environmental Protection Agency (EPA).
Receipts are up by $174 billion in FY26 compared to the previous year: individual income tax receipts have increased by $89 billion, and customs duties collections rose by $107 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 $88 billion decrease in corporate income tax collections.
National Debt
$31.3T
Debt Held by the Public at the end of May FY26
$28.8T
Debt Held by the Public at the end of May FY25
The FY26 deficit through the first seven 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.