The U.S. Treasury said the fiscal 2026 deficit widened $217 bln YoY to $1.99
tln, the largest since FY2021 and the third-largest on record. Receipts were a
record $5.40 tln, up 3% YoY, while outlays hit a record $7.40 tln, up 6%.
Debt-service payments rose 12% YoY to a record $1.36 tln. A Supreme Court ruling
voiding much of the Trump-era tariff program prompted $145 bln in tariff refunds
in FY2026, cutting net tariff revenue 11% YoY to about $173 bln. Treasury
estimates the deficit at 6.2% of GDP versus 5.8% a year earlier. September
showed a $27 bln deficit versus a $198 bln surplus in the same month last year.
