- The FY26 US budget deficit approached $2 trillion, its highest level since the pandemic, per Treasury Department figures released Oct. 16, 2026.
- Spending on the military, safety net programs and interest on the debt outweighed the Trump administration's cost cuts.
- Higher interest rates are inflating federal borrowing costs as the administration spends on the Iran war and tariff refunds.
Quotes
“The United States budget deficit approached $2 trillion in the 2026 fiscal year, its highest level since the pandemic”