WASHINGTON — The U.S. Treasury released updated federal budget figures for the current fiscal period on June 10, showing that the government's budget deficit remained above $1 trillion through the first eight months of fiscal year 2026, according to Treasury Department data and budget analysts.
The figures, published in the Monthly Treasury Statement, indicated that the federal government recorded a deficit of about $293 billion in May. Treasury data showed that total receipts and expenditures both declined from the same month a year earlier, although officials noted that calendar-related payment shifts affected year-over-year comparisons.
For the fiscal year beginning Oct. 1, 2025, and running through May 2026, the cumulative deficit totaled approximately $1.25 trillion, according to the Treasury Department. Federal receipts reached a record level for the period, while spending also remained near historic highs, driven in part by entitlement programs and interest payments on government debt.
Treasury officials reported that net customs-duty revenue was affected by tariff refunds issued following court rulings related to trade measures. Reuters reported that customs refunds in May exceeded gross collections, contributing to a decline in net customs revenue for the month.
Interest costs continued to be a significant budget item. Treasury data showed that interest payments on federal debt reached a record monthly level in May, reflecting higher borrowing costs and the growing size of the national debt.
The Congressional Budget Office, in its most recent monthly budget reviews, reported that deficits during fiscal year 2026 have remained lower than the comparable period a year earlier, largely because revenue growth has outpaced increases in spending. However, the agency said federal outlays continue to rise across several major categories.
Budget watchdog groups said the latest figures underscored continuing fiscal pressures. "The borrowing train continues unabated," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement following the Treasury release. The organization cited Treasury data showing more than $1.2 trillion in borrowing through the first eight months of the fiscal year.
The Treasury Department has not announced revisions to its latest budget figures. Additional budget data will be released in coming months as officials continue to track federal revenues, expenditures and borrowing needs through the remainder of fiscal year 2026. According to Congressional Budget Office projections released earlier this year, federal deficits are expected to remain elevated by historical standards.
