U.S. Deficit Rises by $1 Trillion in First Five Months of 2026 Fiscal Year
The United States government added about $1 trillion to its federal deficit in the first five months of the 2026 fiscal year, according to the Congressional Budget Office (CBO).
In its monthly budget review updated to February 2026, the agency said the U.S. Treasury borrowed an estimated $308 billion in February alone.
The report showed that borrowing continued to rise as the U.S. government moved deeper into the fiscal year that began in October 2025.
According to the CBO, increased borrowing has also raised the cost of servicing the country’s growing public debt.
The agency said that between October 2025 and February 2026, the Treasury spent an additional $31 billion on net interest payments compared with the same period in the previous fiscal year.
As a result, the U.S. government spent about $433 billion on servicing its public debt within the first five months of the fiscal year.
The CBO noted that the rising cost was linked to the expanding size of the national debt and higher long-term interest rates.
“Outlays for interest increased because the debt was larger than it was in the first five months of fiscal year 2025 and because of higher long-term interest rates,” the office stated.
It added that “declines in short-term interest rates partially mitigated the overall rise in interest payments.”
The report also indicated that the U.S. national debt was approaching $38.9 trillion during the period under review.
Despite the large borrowing figures, the CBO said the current deficit represents a slight improvement compared with the same period in the previous fiscal year.
Between October 2024 and February 2025, the government borrowed about $142 billion more than the amount recorded in the current fiscal year period.
