National Debt

The Federal Government Ran Up a $2 Trillion Deficit in 2026

Congress hasn’t balanced the budget in 25 years.

J.D. Tuccille | 10.5.2026 7:00 AM

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Fiscal year 2026 ended last week, and while official figures aren't out yet, it looks like the federal government spent $2 trillion more than it took in. That's not quite a record—in dollar terms, the federal government ran a bigger deficit in 2020 when the feds showered money on the country in hopes of offsetting COVID-19 lockdowns (fueling inflation in the process), and the deficit was a bigger share of GDP both that year and during the Great Recession. But given the federal government hasn't balanced its books in 25 years, a $2 trillion deficit adds to already staggering national debt and looming disaster.

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The Feds Run Up the Credit Card

Noting the end of the fiscal year, on October 1 the Committee for a Responsible Federal Budget (CRFB) commented: "Although official figures have not yet been released, our preliminary estimates show high and rising deficits and debt."

Among other things, the CRFB estimated a $2 trillion total deficit, totaling 6.2 percent of GDP, with debt held by the public at $32.3 trillion, or 100 percent of GDP. Interest alone totaled $1.1 trillion, "a record 3.4% of GDP."

The budget watchdog added that interest on money borrowed to finance the........

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