US Deficit Hits $1.992 TrillionThe US budget deficit reached $1.992 trillion in fiscal 2026, up 12% from $1.775 trillion in 2025. It was the 3rd largest in US history, at about 6.2% of GDP, and the 25th straight year in the red. The last surplus was in 2001.
Revenue and spending both hit records at $5.403 trillion and $7.396 trillion. Social Security cost nearly $1.7 trillion, Medicare almost $1.1 trillion, and net interest topped $1 trillion, up from $970 billion last year.
Tariffs did not close the gap. After the Supreme Court struck them down in February, $144.6 billion in refunds nearly halved $317.8 billion in gross customs receipts. Gross national debt is now above $40.3 trillion. A near $2 trillion deficit outside a recession keeps the 10-year Treasury yield above 5%, while bond supply pressure also weighs on high-multiple AI names.
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