https://www.live-feeds.com/feed/us-budget-deficit-grows-to-nearly-2-trillion-highest-since-2021Continuously updated, source-cited coverage. https://www.live-feeds.com/feed/us-budget-deficit-grows-to-nearly-2-trillion-highest-since-2021https://www.live-feeds.com/feed/us-budget-deficit-grows-to-nearly-2-trillion-highest-since-2021#u137399Mon, 19 Oct 2026 21:40:51 +0000The US budget deficit grew to $1.99 trillion for the 2026 fiscal year, marking the highest level since 2021. This represents a 12% increase in a single year, with the gap rising by $217 billion. Treasury Department data indicates the surge was driven by increased spending, including record costs to service national debt and tariff refunds. The deficit now stands as the largest since the pandemic era, coinciding with upcoming midterm elections and ongoing efforts by President Donald Trump to reduce public spending.Why it mattersHigh interest rates have pushed the cost of servicing federal debt