Treasury Department raises April-June borrowing estimate to $189 billion
Updated
Updated · Fortune · May 9
Treasury Department raises April-June borrowing estimate to $189 billion
10 articles · Updated · Fortune · May 9
The new forecast is $79 billion above February's estimate and $122 billion higher after adjusting for a larger opening cash balance.
Treasury said weaker cash flow reflected tax breaks from last year's One Big Beautiful Bill Act and refunds to importers after the Supreme Court struck down Donald Trump's global tariffs.
It borrowed $577 billion in January-March and expects $671 billion in July-September, as investors watch heavy debt supply and persistent upward pressure on long-term Treasury yields.
As foreign buyers exit and Fed rate cuts fail, who will fund America's soaring deficits?
AI giants and the government are borrowing trillions. Are we entering a new era of permanent capital scarcity?
Global central banks are choosing gold over U.S. bonds. Is this a temporary trend or a fundamental financial shift?
U.S. Treasury Borrowing Surges to $189 Billion for Q2 2026: Drivers, Risks, and Market Impacts
Overview
The U.S. Treasury has sharply increased its borrowing projections for April–June 2026, now expecting to issue $189 billion in net marketable debt and end the quarter with a $900 billion cash balance. This $79 billion upward revision from February is mainly due to lower projected net cash flows, though a higher starting cash balance helped offset some of the increase. Without this offset, the borrowing need would have been $122 billion higher than previously estimated. These changes highlight growing fiscal pressures and the Treasury’s need to adjust its strategies to manage rising debt and cash flow challenges.