Summary：US Fiscal Deficit Soars to $1.4 Trillion in First Nine Months of FY 2026 **Introduction** The Cong

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US Fiscal Deficit Soars to $1.4 Trillion in First Nine Months of FY 2026

**Introduction**
The Congressional Budget Office (CBO) released its latest budgetary update on Tuesday, revealing that the United States government’s borrowing for the first nine months of fiscal year 2026 has climbed to $1.4 trillion. The figure marks a $35 billion increase over the deficit recorded during the same period in FY 2025, underscoring a widening gap between federal outlays and revenues as the nation navigates lingering inflation pressures and elevated interest costs.

**Key Developments**
According to the CBO, tax receipts rose modestly by 2.1 % year‑over‑year, driven primarily by higher individual income collections amid a tight labor market. However, outlays surged 4.8 % due to three main factors:

1. **Interest on the national debt** – climbing to $420 billion, a 12 % jump as the average yield on Treasury securities rose above 4.5 %.
2. **Mandatory spending** – Social Security and Medicare outlays grew 3.5 % as beneficiary rolls expanded and cost‑of‑living adjustments took effect.
3. **Discretionary defense and infrastructure programs** – Congress approved supplemental funding for Ukraine aid and broadband expansion, adding roughly $85 billion to the nine‑month total.

The CBO noted that the deficit would have been even larger without a temporary dip in corporate tax payments, which fell 1.4 % after several large firms shifted income overseas ahead of anticipated