From $7 trillion in spending to $40 trillion in debt: Fiscal Year 2026 by the numbers

The United States ends fiscal year 2026 (FY2026) with figures that once again highlight the federal government's size. During the first eleven months of FY2026, from October 1, 2025, to August 31, 2026, Washington, D.C., spent nearly $7 trillion and collected about $4.8 trillion. The difference was nearly $2 trillion. In other words, the federal government spent more than 40% more than it took in.

But the deficit is only part of the story. During the same period, more than $1 trillion went toward paying interest on the debt, while Social Security, Medicare and Medicaid absorbed another $3.1 trillion. At the same time, tariffs, one of the main economic tools most heavily promoted by the Trump administration, generated $167 billion in revenue.

As fiscal year 2026 comes to a close, these figures illustrate how much the federal government spent, how much it collected, and how it used its funds.

The data used in this article comes from the federal revenue and expenditure records of the Department of the Treasury and were analyzed by the Congressional Budget Office (CBO). The latest available report covers the first 11 months of FY2026, through August. Because September data are not yet available, the final fiscal-year result has not been finalized. Therefore, when referring to the result for all of FY2026, the CBO's most recent projections are used.

$2 trillion: The deficit

According to data released by the CBO, the federal government ran a deficit of approximately $2 trillion between October 2025 and August 2026.

The figure is $6 billion lower than the amount recorded during the same period in FY2025. However, the timing of certain payments influences the comparison. After adjusting for that effect, the CBO estimates the FY2026 deficit would have been $82 billion higher than in the same period the previous year. For the full fiscal year, which ends on September 30, the CBO projects a deficit of about $2.1 trillion.

$6.81 trillion: Washington, D.C., spending

Broadly, federal spending falls into different categories. Mandatory spending accounts for about 60% of total spending and includes programs whose benefits are defined by law, such as Social Security, Medicare, and Medicaid. Discretionary spending accounts for about 26% and must be approved by Congress each year. This includes items such as defense, education, and transportation, as well as specific expenditures. The remainder consists mainly of interest payments on debt.

In the first 11 months of the fiscal year, the federal government spent $6.812 trillion, $147 billion more than in the same period of FY2025.

Specifically, there are three major programs that accounted for nearly half of the spending:

Collectively, these three categories increased by 7% compared with the same period in FY2025, after adjusting for calendar effects.

Another major expenditure was the Department of War, which received $833 billion for military activities. Military spending increased by 5% compared to the first 11 months of FY2025.

$1.05 trillion: The cost of interest

The $1.05 trillion in interest is part of the $6.81 trillion in cumulative federal spending during the first 11 months of FY2026. This is the money the government pays on the loans it took out to finance its operations and cover previous deficits.

During that period, interest payments totaled $1.05 trillion, 12% more than in the first 11 months of FY2025. The CBO attributes the increase mainly to higher debt than a year earlier and higher long-term interest rates.

$4.85 trillion: Federal government revenue

Revenue reached $4.845 trillion during the first 11 months of the fiscal year, $154 billion more than in the same period of the previous year.

The largest source was federal personal income taxes, at $2.547 trillion, followed by payroll taxes (which primarily fund Social Security and Medicare), at $1.664 trillion.

In contrast, corporate tax revenue fell 25%, to $294 billion. According to the CBO, one reason was the impact of the Big Beautiful Bill, or the Working Families Tax Cut Act, which allowed companies to immediately deduct the cost of certain investments. By deducting those expenses from their taxable income, companies paid less corporate tax during this period.

How much revenue did tariffs generate?

Customs duties, including tariffs, generated $167 billion during the first 11 months. This figure is $1 billion higher than in the same period in FY2025.

Tariff revenue was initially higher but declined after the government began refunding money collected under tariffs imposed under the International Emergency Economic Powers Act (IEEPA), following the Supreme Court's decision in February. As of August, the CBO estimated that approximately $110 billion in refunds related to those tariffs had been issued.

For this reason, in July, the CBO reduced its FY2026 net tariff revenue projection by about $250 billion from its February estimate.

What about the debt?

Finally, the national debt recently reached record highs. Unlike the deficit, the national debt does not measure how much the government overspent in a single year. The debt is the amount that has accumulated from previous deficits.

In August, gross federal debt exceeded $40 trillion for the first time in history. Of that total, about $32.3 trillion was debt held by investors and other holders, while the remaining $7.8 trillion was debt the government owed to itself.

The distinction matters because the CBO primarily uses public debt for its economic projections. At the start of FY2026, it projected that this measure would reach about $32.1 trillion by the end of fiscal year 2026.