U.S. Federal Budget Deficit

At a glance

The U.S. federal budget deficit measures the gap between government spending, driven by Social Security, Medicare and interest on the debt, and revenues from individual and corporate income taxes. For the 2026 fiscal year detailed October 16, 2026, Social Security spent nearly $1.7 trillion, Medicare spent almost $1.1 trillion, and net interest topped $1 trillion, compared with roughly $1.6 trillion, just under $1 trillion, and $970 billion respectively in fiscal 2025. On the revenue side, individual income taxes exceeded $2.8 trillion, up about 7% year over year, while corporate income taxes contributed $381 billion. The combination of large and growing mandatory and interest outlays alongside rising receipts highlights ongoing fiscal pressure with implications for borrowing, interest rates and federal budget policy.