US federal budget deficit jumps 12% in one year to nearly $2 Trillion

The US federal budget deficit reached $1.992 trillion in fiscal year 2026, a 12% increase from the previous year's $1.775 trillion, driven by $7.396 trillion in spending against $5.403 trillion in revenues. The deficit represents approximately 6% of GDP and reflects a concerning trend, as economists warn the US now routinely runs deficits previously seen only during recessions and wars. With the national debt exceeding $40.3 trillion and annual interest costs hitting a record $1.1 trillion, budget analysts project deficits could reach $3.1 trillion by 2036 without significant fiscal changes.