US budget deficit hits $2 trillion in fiscal 2026

The US budget deficit rose to $1.99 trillion in fiscal year 2026, a 12% increase from the prior year. This was driven by record $1.36 trillion in interest payments on public debt, $145 billion in tariff refunds, and a 6% rise in federal spending to $7.4 trillion. The deficit rise comes despite US President Donald Trump's pledges to cut spending.