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Federal Budget Deficit Climbs to $2 Trillion as Fiscal Jitters Multiply
Net interest costs topped $1 trillion for the first time as tariff refunds and weaker corporate tax revenue widened the gap, the CBO said.
- On Thursday, the Congressional Budget Office reported the federal budget deficit reached $2 trillion for the fiscal year ending Sept. 30, a 12% increase from $1.8 trillion last year.
- Net interest payments on public debt topped $1 trillion for the first time, rising 11%, while corporate tax revenue fell 16% to $382 billion despite higher business profits.
- After the Supreme Court ruled certain tariffs illegal, the administration issued $130 billion in refunds, while the "big, beautiful bill" Trump and The Republicans enacted allows larger investment deductions.
- Growing financial woes and rising corporate debt supply have sparked recent bond market turmoil, with national debt hitting a record $40 trillion in August and Lawmakers expected to face another debt ceiling crisis next year.
- Republicans and Democrats on Capitol Hill remain unwilling to address worsening fiscal health, prompting Maya MacGuineas, president of the Committee for a Responsible Federal Budget, to warn, "Our fiscal path has been running backwards for far too long.
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The federal budget deficit increased to nearly $2 trillion; interest payments and duty refunds are determining factors, according to a report
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Federal Deficit Surges Toward $2 Trillion as Interest Payments Exceed $1.1 Trillion
The United States recorded its largest annual budget shortfall since 2021 as federal spending outpaced revenue growth, intensifying concerns about government borrowing, rising Treasury yields ... The post Federal Deficit Surges Toward $2 Trillion as Interest Payments Exceed $1.1 Trillion first appeared on [your]NEWS.
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Total News Sources34
Leaning Left0Leaning Right9Center13Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
C 59%
R 41%
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