U.S. Borrowing Tops $1.2 Trillion in First Eight Months of FY2026, Treasury Says

The U.S. Treasury confirmed that the federal government ran a $293 billion budget deficit in May and has borrowed roughly $1.246 trillion during the first eight months of Fiscal Year 2026. Treasury data show record receipts and record spending through May, with revenues totaling $3.656 trillion and outlays reaching $4.902 trillion.

The figures arrive during President Donald Trump’s second administration and amid ongoing debate over tariffs, taxes, and federal spending.

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While tariff collections boosted government revenue over the past year, budget analysts argue that rising interest costs and structural spending obligations continue to drive large deficits. Treasury reported a record $133 billion in gross interest payments in May alone.

Fiscal watchdog groups say borrowing remains historically high despite revenue gains. Supporters of the administration point to stronger customs collections and slower spending growth than some projections expected. Critics argue the long-term debt trajectory remains largely unchanged as annual deficits are still projected to approach or exceed $2 trillion in coming years.

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