The U.S. Department of the Treasury recently released its final Monthly Treasury Statement for fiscal year 2026. In a new insight, Director of Fiscal Policy Jordan Haring breaks down the data and highlights key findings.

Key points:

• The Treasury Statement shows a $2.0 trillion budget deficit for the year – $217 billion higher than the deficit recorded in FY 2025; the FY 2026 deficit was the net effect of $7.4 trillion of spending and $5.4 trillion of revenue collections.
• As a share of the economy, the FY 2026 deficit was an estimated 6.1 percent of gross domestic product (GDP).
• Federal debt held by the public increased by $2.0 trillion to $32.4 trillion between FY 2025 and FY 2026; as a share of the economy, debt totaled an estimated 100 percent of GDP.
• Interest payments on the national debt totaled $1.1 trillion, surpassing spending on national defense; net interest was the third-largest federal government expenditure behind Social Security and Medicare.

Read the analysis.