CBO: U.S. Added $1 Trillion to Deficit in First Five Months of FY2026, Borrowing About $50 Billion a Week
Mar 10th 2026
The CBO monthly budget review through February 2026 shows the Treasury added about $1 trillion to the deficit in the first five months of the fiscal year, with rising interest costs as public debt approaches $38.9 trillion.
- CBO reports the federal government borrowed roughly $1 trillion from October 2025 through February 2026, averaging about $50 billion per week.
- The Treasury borrowed $308 billion in February 2026 alone.
- Net interest payments rose by $31 billion versus last year and totaled $433 billion over the five months as public debt nears $38.9 trillion.
- CBO says higher long-term rates and a larger debt stock increased interest costs while lower short-term rates partly offset the rise.
- The deficit for the October through February period was $142 billion smaller than the same period last year due mainly to higher revenues rather than reduced spending.
- Customs duties increased by $109 billion and individual plus payroll taxes rose by $132 billion, boosting collections.
- Outlays reached $3.1 trillion, up $64 billion, with Social Security, Medicare and Medicaid spending up by $104 billion.
- Fiscal experts warn interest payments may exceed $1 trillion this year and $2 trillion by 2036 and urge policymakers to pursue deficit reduction.