Deficit

The federal deficit is the gap between what the government collects and what it spends each year. Positive values are surpluses; negative values are deficits.

$1.95T

FY2026 Deficit

$4.92T

Revenue

$6.87T

Spending

39.6%

Deficit-to-Revenue

Revenue vs. Spending

The gap between the lines is the deficit. The last time the government ran a surplus was in 2001.

Annual Deficit / Surplus (in billions)

Positive values are surpluses. The U.S. ran surpluses in 2000 and 2001. The largest deficits occurred during COVID-19 (2020-2021) and the Great Recession (2009-2012).

What Drives the Deficit?

Spending Drivers

• Social Security and Medicare costs rising with aging population
• Interest on the debt growing rapidly with higher rates
• Defense spending at near-record levels
• Mandatory spending (71%) leaves little room for cuts

Revenue Factors

• Individual income taxes account for 51% of revenue
• Corporate tax receipts remain below historical averages
• Economic growth drives higher tax collections
• Tax policy changes can significantly impact revenue

Learn more about the budget process: How the Federal Budget Works

Monthly Deficit Updates

Get notified when Treasury releases monthly revenue and spending data. Track whether the deficit is growing or shrinking.