US FY2026 Deficit Reaches $1.37 Trillion in 9 Months as Outlays Outpace Revenue
Updated
Updated · The Fiscal Times · Jul 9
US FY2026 Deficit Reaches $1.37 Trillion in 9 Months as Outlays Outpace Revenue
2 articles · Updated · The Fiscal Times · Jul 9
Summary
$1.37 trillion — the federal deficit for the first nine months of FY2026 — ran $35 billion above the same period a year earlier, according to the Congressional Budget Office.
Receipts rose $142 billion to $4.15 trillion, helped by higher income and payroll taxes and a $55 billion, 51% jump in customs duties from higher tariff rates.
Outlays climbed faster, up $178 billion to $5.52 trillion, led by a $169 billion increase in Social Security, Medicare and Medicaid, plus $98 billion more in net interest and $30 billion more for defense.
Some spending fell, including a $55 billion drop at the Education Department tied to lower estimated student-loan costs; EPA, Homeland Security and Commerce also posted declines.
The figures suggest FY2026 is still tracking above FY2025 after last year's tariff-driven improvement, with tax cuts and spending increases now widening the gap again.