US federal deficit reaches $1.99 trillion in fiscal 2026, up from $1.78 trillion a year earlier
The Treasury's September statement closes fiscal 2026 with a deficit of $1.992 trillion, up from $1.775 trillion in fiscal 2025, which equals a 12% increase.
The US Treasury's Monthly Treasury Statement for September 2026 gives the final budget results for fiscal 2026, which ended on 30 September. It records a deficit of $1.992 trillion for the year, up from $1.775 trillion in fiscal 2025. That is an increase of about 12%.
The numbers
- Fiscal 2026 deficit: $1,992,473 million, from the Treasury's table
- Fiscal 2025 deficit: $1,775,369 million
The deficit is the gap between federal spending and revenue across the year, so a wider deficit means more government borrowing.
Reading it
A deficit near $2 trillion matters for bond markets, because more borrowing means more Treasury issuance. In recent weeks, the 10-year Treasury yield has moved from 5.31% to 5.09% (yields report), which shows how supply and rate expectations can pull in different directions. For the link to currencies, see how the 10-year yield moves forex.
The earlier fiscal figures for August are in our budget deficit report. Live prices: EUR/USD.
Sources
Common questions
How big was the US federal deficit in fiscal 2026?
The Treasury reported a deficit of $1.992 trillion for fiscal 2026, up from $1.775 trillion in fiscal 2025.
What is the difference between a deficit and debt?
The deficit is the gap between spending and revenue in one year. The debt is the accumulated total of past deficits, less any surpluses.
Why does the US deficit matter for currencies?
A larger deficit means more Treasury borrowing, which can push up yields and affect the dollar, although the effect depends on demand from buyers.
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